Under the background of sustainable development and high-quality development in China, it is of great significance to actively promote enterprises to practice ESG development concepts and digital transformation. This study uses a sample of state-owned companies in the Chinese capital market during the period from 2014 to 2020. The results of the research show that there is a U-shaped relationship between ESG performance and the value of state-owned enterprises. And digital transformation plays a positive moderating role in the relationship. The result of a further mechanism study indicates that ESG performance affects enterprise value by reducing the financing constraints. This study also examines the results using a dynamic panel model and endogeneity test method. Therefore, this study provides references to promote ESG practices and offers new insight into the role of digital transformation in state-owned companies. In order to pursue sustainable development and high-quality economic development, ESG practices and digital transformation should also be paid attention to in enterprises.