The Impact of Environmental Responsibility of Small and Medium sized Enterprises on Corporate Performance: Mediating Role Based on Sustainable Innovation

Since the beginning of industrialization and the development of urbanization, the sharp increase in pollutant emissions and human consumption of resources have led to the deterioration of the ecological environment. With the development of society, corporate environmental responsibility is a part of corporate social responsibility, which is related to the development of enterprises, society, and ecology. As the main body of practicing green development, small and medium-sized enterprises play an important role in fulfilling environmental responsibilities and promoting the comprehensive green transformation of enterprises. Meanwhile, by using sustainable innovation as a mediating effect and searching relevant literature, it was found that corporate environmental regulations affect corporate performance through sustainable innovation. Through literature review, it was found that the higher a company's environmental responsibility score, the stronger its financial performance. The research results can help promote enterprises to actively fulfill their environmental responsibilities, strive to improve financial performance in environmental governance, and achieve long-term investment value and sustainable development of enterprises. This article summarizes the current research status on corporate environmental responsibility, corporate financial performance, and sustainable development, identifies potential research directions for the future, assists small and medium-sized enterprises in achieving "comprehensive green transformation" and "high-quality economic development", and realizes the optimal value of enterprises on the path of sustainable development.