The Impact of Corporate ESG Ratings on Green Innovation Development

In an era where green and innovation have become hot topics, this paper deeply explores the impact of corporate ESG (Environmental, Social, and Governance) ratings on their green innovation development. The study is based on data from Chinese A-share listed companies from 2018 to 2023 and uses a fixed-effects model for empirical analysis. The results show that there is a significant positive correlation between ESG ratings and corporate green innovation capabilities, that is, the higher the ESG rating score of a company, the stronger its green innovation capabilities. The study also finds that both external pressures and internal drivers can promote corporate green innovation through different mechanisms. External factors, such as investor attention and media supervision, can increase corporate attention to green innovation. Internal factors include strategic adjustments, cost control, and talent attraction. In addition, the study ensures the reliability of the results by controlling for potential causal biases and conducting a series of robustness tests. Based on the research results, this paper proposes that enterprises should strengthen ESG strategic planning and integrate it into daily operations, Other recommendations include improving transparency, enhancing communication with stakeholders, increasing R&D investment, optimizing talent structure, strengthening internal management, and improving resource efficiency. Through these measures, enterprises can not only improve their own ESG ratings but also promote green innovation and sustainable development globally.