<p>The urgent need for environmental sustainability and control of the climate over the growing pollution and industrialization in China creates tremendous challenges and opportunities for the social enterprise sector. This research examines the impact of energy-saving practices, sustainable production processes, and green transportation on social enterprise performance in China. Using climate entrepreneurship and carbon management practices as mediators and organizational values as a moderator, the study explores how these variables contribute to the reduction of CO₂ emissions while ensuring financial and social performance is maintained. The structure links micro-level action on renewable energy and circular production to macro-strategic positioning and provides a multidimensional approach to optimizing enterprise performance through firm sustainability commitments. The stakeholder theory has been applied to estimate the role of environmental responsibility in driving enterprise performance, particularly the positive relationship between emission reduction and performance outcomes in the economic, environmental, and social contexts. This study tests such relationships by applying SEM to 330 respondents in Chinese social enterprises. These findings add to the understanding of managers and policymakers on how sustainability practice needs to be aligned with stakeholder expectations in accomplishing high performance in social enterprises. This study shows the potential role that a sustainability-driven organizational culture can play in effectively facilitating the green transition toward the carbon-reduction goals laid down for China. The findings indicated that the organizational culture could significantly improve environmental impact with integrated sustainability practices in their organizational culture, bringing along even business performance improvement.</p> Graphical Abstract <p></p>