Addressing Path Identification for ESG-driven Corporate Sustainability Through Mediated Effects Modelling

In the context of ecological civilisation construction, environmental, social and governance(ESG) performance as a crucial measure of a company's capacity for sustainability, its value creation path still needs to be explored in depth. Considering data from Chinese A-share companies that were listed between 2015 and 2022, this study constructs a theoretical model with green innovation efficiency (GIE) as the core mediating variable, and empirically uses the fixed effect model and mediated effect analysis to examine how ESG performance influence the business sustainable development ability The study finds that ESG performance significantly enhances corporate sustainability, and GIE plays a partly mediating role in it, and the conclusion is still valid after the robustness test. This study reveals the intrinsic path of ESG driving sustainable development through optimising green innovation resource allocation. The study provides solid theoretical support and a forward-looking action plan for companies to deepen their ESG practices and transform their innovation efficiency.