Evaluating the impact of ESG-driven policies on cleaner production in China’s manufacturing sector

The present research examines how Environmental Social Governance (ESG)-driven policies affect cleaner manufacturing practices in China's manufacturing sector, which remains crucial because of China's fast-paced industrial expansion and environmental problems. A combination of research approaches allows the study to assess data collected from 150 manufacturing firms in central provinces through OLS regression analysis and structural equation modeling. Our research approach combines 150 quantitative surveys of major manufacturing companies in China with 15 qualitative interviews of ESG managers and production supervisors. The study finds that firms achieve cleaner and more efficient production results by implementing strong ESG policies through essential stakeholder participation. The results demonstrate how positive institutional pressures enhance ESG practice adoption rates in developing sustainable initiatives. Our regression analysis indicates that institutional pressures significantly increase ESG adoption, with a coefficient of 0.268 (p < 0.01), highlighting their substantial role in promoting cleaner production. The findings connect existing research through the combination of Stakeholder Theory and Institutional Theory, particularly within the Chinese market, to explain ESG compliance and sustainable manufacturing dynamics. The study provides vital knowledge to help practitioners implement sustainable operations through strategic planning and showcases research possibilities for new markets.