ESG Performance and Green Innovation Capability of Photovoltaic Enterprises: Empirical Evidence from China Based on EWM-TOPSIS Method

Abstract

Driven by global carbon neutrality goals and the accelerating energy transition, green innovation has become a core driver for the sustainable development of the photovoltaic (PV) industry. Environmental, social, and governance (ESG) performance, as a vital dimension of corporate sustainable governance, is related to corporate green innovation. This study systematically evaluates the green innovation capability of Chinese PV enterprises and investigates the relationship, regional heterogeneity, and mediating roles of financing constraints and resource allocation of ESG performance on green innovation. Using panel data of China’s A-share listed PV enterprises from 2022 to 2024, a comprehensive index system covering innovation input, transformation, and development is constructed. The entropy weight method (EWM) and the technique for order preference by similarity to an ideal solution (TOPSIS) are combined to quantitatively assess green innovation levels. A benchmark regression model is applied, followed by regional heterogeneity analysis and a supplementary mediation analysis. The empirical results show a positive association between ESG performance and green innovation capability that exhibits regional heterogeneity and may be mediated by financing constraints and resource allocation. These findings provide a quantitative framework for evaluating green innovation capability and empirical references for optimizing ESG management and formulating region-specific green industrial policies.