Abstract
This study examines the systemic integration of Environmental, Social, and Governance (ESG) practices in global supply chains, tackling the challenge of aligning smaller suppliers with the sustainability goals of large downstream firms. In collaboration with a major publicly listed company in China, we utilize comprehensive firm-level data to test innovative, cost-effective mechanisms for enhancing supplier ESG performance. Grounded in organizational economics, our experimental design draws on multitasking and delegation theories to examine the allocation of decision-making authority. Horizontally, we evaluate how data verification and incentive structures influence balanced ESG advancement among suppliers. Vertically, we compare the effects of mandated versus self-selected ESG improvement metrics on supplier engagement and efficiency. By rigorously assessing ESG and financial performance across experimental groups, this research delivers scalable, theory-driven insights to advance sustainable supply chain practices, offering valuable contributions to both academic scholarship and practical application.