The new ESG strategy integrates innovation and ESG frameworks and is a key path for enterprises to achieve sustainable development. By analysing the definitions and roles of innovation and ESG strategies, this article provides insights into the role of innovation-driven ESG strategies in terms of financial performance, stakeholder value creation, and social impacts, highlighting the key role of innovation in improving competitiveness, promoting sustainable development, expanding markets, improving efficiency and reducing costs, and stimulating employee creativity. The article also explores in detail the positive impact of innovative ESG strategies on financial performance, as well as mechanisms for creating long-term value in terms of employee engagement, social responsibility, and environmental sustainability. In terms of future outlook, the importance of social responsibility in terms of social justice, digital inclusion, environmental sustainability, global health, social entrepreneurship, etc. is emphasised. Technological innovation is also seen as an engine to drive the sustainability of ESG strategies, including expansion in areas such as smart cities, blockchain, clean energy, and digital agriculture. The conclusion points out that new ESG strategies are a key path for companies to move towards sustainable development, requiring continuous innovation, integration of ESG concepts, and active participation in social affairs in order to achieve synergistic win-win outcomes for the economy, society, and the environment.

Zhenyu Sun. Innovation-driven ESG strategies: Exploring their impact on financial performance and stakeholder value. Academic Journal of Business & Management (2024) Vol. 6, Issue 2: 201-208. https://doi.org/10.25236/AJBM.2024.060229.

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