Abstract: As an important institutional innovation,sustainability evaluation can guide and motivate enterprises to practice sustainability principles and achieve high-quality development through green transformation. Based on the data of A-share listed companies from 2011 to 2020,this study empirically tests the mechanism and the impact of sustainability evaluation represented by ESG performance on corporate green innovation. We found that ESG performance significantly improves the quantity and quality of green innovation,and presents the heterogeneity of pollution emission and ownership. The mechanism test results show that ESG performance can have a positive impact on corporate green innovation by easing financing constraints,improving management's awareness of green development and improving employees' innovation efficiency. The further analysis reveals that ESG performance can significantly improve the financial performance of enterprises in the stage of rapid development and high-quality development of green innovation. Consequently,we should accelerate the establishment of the systems of ESG information disclosure and evaluation standard in line with national conditions,and enhance the comparability and compatibility of domestic and international mainstream rating systems. It is also vital to support green technological innovation through fiscal,tax and green financial tools,and encourage enterprises to build and improve ESG management mechanism from long-term strategies and corporate systems. Additionally,accelerating the transformation and application of green technology achievements and actively building industry benchmarks will help to form successful models and experience that can be replicated and promoted.

Key words: sustainability evaluation, ESG performance, green innovation, listed companies