The Relationship between ESG Management, Green Innovation, and Business Performance : A Focus on Chinese Companies

[Purpose]This study aims to examine the impact of ESG management and green innovation on corporate performance, based on the theories of sustainable development and stakeholder theory. [Methodology]The study was designed by using previous research and theoretical frameworks, and a survey was conducted targeting Chinese manufacturing firms. A total of 192 valid questionnaires were used for the final analysis, and hypotheses were tested using PLS-SEM. [Findings]The results revealed that both ESG management and green innovation have a positive impact on corporate performance. Furthermore, green innovation plays a mediating role in the relationship between ESG management and corporate performance. This indicates that implementing ESG management and promoting green innovation are essential management strategies for a company’s sustainable survival and growth. [Implications]This study suggests that companies can achieve sustainable growth through green innovation in the course of implementing ESG management. The findings will help companies develop policies for adopting ESG management practices, encompassing environmental, social, and governance factors, to achieve long-term business success and sustainable development.