As a significant measure in the reform of the audit management system, the establishment of central and local Party committee audit commissions plays a pivotal role in strengthening state oversight and promoting high-quality economic development. Taking the highquality ESG development of micro-level enterprises as the starting point, this study employs a multi-period difference-in-differences model using a sample of listed company data from 2014 to 2023 to examine the impact of establishing Party committee audit commissions on the ESG performance of state-owned enterprises. The findings reveal that, compared to non-state-owned enterprises, the establishment of Party Committee Audit Committees significantly enhances the ESG performance of state-owned enterprises. This conclusion remains robust after undergoing parallel trend tests, placebo tests, and other stability checks. Mechanism analysis reveals that Party Committee Audit Committees improve state-owned enterprises’ESG performance by enhancing state audit quality and media scrutiny, while adjusting executive recruitment strategies. Heterogeneity tests indicate that the positive effect is more pronounced in enterprises with higher levels of Party organisation embedding, more frequent company audit committee meetings, more robust Party Committee Audit Committee systems, and those directly managed by the central government. Economic consequence tests suggest that establishing Party Committee Audit Committees can enhance enterprise value by strengthening the ESG performance of state-owned enterprises.