Taking Chinese A-share listed companies from 2009 to 2021 as the research object, the paper analyzes whether ESG performance can affect corporate bankruptcy risk. Research has found that better ESG performance significantly reduces the level of corporate bankruptcy risk. Mechanism analysis found that improving ESG performance of enterprises alleviates financing constraints of listed companies, while improving financial performance, thereby reducing the risk of corporate bankruptcy. In addition, digital transformation of enterprises can enhance the inhibitory effect of ESG performance on bankruptcy risk. Furthermore, based on the macro, meso, and micro perspectives of enterprise management, it is found that ESG performance has a universal inhibitory effect on bankruptcy risk, but its effect is more pronounced in the groups of low legal level, low competition level, non-state-owned enterprises, and financially distressed enterprises. This study helps to understand the inherent logic of risk management in enterprises through ESG strategies, and provides empirical references for enterprises.