Sustainability practices are increasingly significant in the current business environment, much more so in China with its rapid economic growth. What drives environmental, social, and governance (ESG) performance, especially regarding the impacts of new quality productivity and green innovation, is thus of importance. The study further assesses the impact of new quality productivity and green innovation on ESG performance with listed companies in China. The research is empirical and regresses the data of the Chinese listed companies from 2011 to 2022. The important findings indicate that new quality productivity significantly improves ESG performance. Efficient innovation practice plays a key role in the promotion of corporate sustainability. Green innovation contributes directly to ESG improvement and enhances the effects of new quality productivity on ESG. This moderating effect has proven to be the more important reason why innovation should be well-infused into core business strategies for sustainable optimization. In addition, this study examines the differential impact of new quality productivity across regions, firm types, and development stages, showing that its effectiveness in driving ESG performance is constrained by the geographic location, firm development stage, and industry characteristics. These findings emphasize the importance of incorporating new quality productivity enhancement and green innovation into corporate strategies, providing valuable insights for managers, policymakers, and investors.
This research focuses on Chinese listed companies to explore the influence of green-oriented strategies and green innovation on corporate productivity. Using empirical data from 2011 to 2022, the study investigates the positive effects of executives’ green perceptions on new quality productivity and the enhancing role of green innovation. The results indicate that executives’ green perceptions significantly enhance new quality productivity. Furthermore, heterogeneity analyses reveal variations in this effect based on firm size, type, and pollution levels, demonstrating the environmental sensitivity of green strategies. Robustness tests reinforce the consistency of these results. Additionally, the research establishes that green innovation not only directly boosts new quality productivity but also strengthens the positive influence of executive green perceptions on productivity. These insights emphasize the critical synergy between green innovation and executive commitment to sustainability as a means to boost productivity, offering valuable guidance for policymakers and business leaders aiming to advance corporate productivity through sustainable practices.