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Research on the Collaborative Development of ESG Performance and Innovation Capability in the Manufacturing Industry

In: Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)

Author

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  • Jinglin Xu

    (Shanghai JianQiao University, College of Foreign Language)

Abstract

As global attention to environmental protection and sustainable development continues to rise, the environmental, social and governance (ESG) performance of enterprises has become an important indicator of their comprehensive competitiveness. In the automotive industry, the environmental pollution and energy shortage caused by traditional fuel vehicles have become increasingly severe, and the transformation to new energy vehicles has become an inevitable trend. Innovation, as the core driving force for the development of new energy vehicle enterprises, has a complex and close relationship with ESG performance. On the one hand, enterprise’s emphasis on ESGs prompts them to increase investment in green technology R&D, social responsibility fulfilment and corporate governance optimization, thereby stimulating innovation vitality and enhancing innovation capabilities, such as developing more efficient battery technologies to reduce environmental impact and promote global sustainable development. On the other hand, the continuous improvement of enterprise’s innovation capabilities also helps to enhance their ESG performance and increase brand value and social recognition. This paper conducts a detailed analysis of Tesla, Inc., in the form of case studies to explore the connection between ESG performance and corporate innovation capabilities. Its aim is to encourage manufacturing enterprises to incorporate sustainable development and social responsibility into the core of their strategies during the process of innovative development and to regard ESG performance as a key dimension for measuring the quality of enterprise development. Ultimately, as the innovation capabilities of enterprises gradually improve, more enterprises attach importance to the sustainable development of society as a whole, and the ESG performance of enterprises may improve. Moreover, ESG performance may also be influenced by other external factors, not just the factor of innovation capability alone. This paper investigates the connection between ESG performance and enterprise innovation capabilities.

Suggested Citation

  • Jinglin Xu, 2025. "Research on the Collaborative Development of ESG Performance and Innovation Capability in the Manufacturing Industry," Advances in Economics, Business and Management Research, in: Barbara Siuta-Tokarska & Adriana Grigorescu & Md. Mamun Habib & Yifeng Zhu (ed.), Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025), pages 583-595, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-835-6_62
    DOI: 10.2991/978-94-6463-835-6_62
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