<p>The simultaneous expansion of digitalization and sustainability can only achieve a complete overhaul of the world’s economic system. Enterprise digitization and equitable growth may coexist, according to this study, which investigates into the significance of heterogeneous technological advances in enhancing ESG performance. Using patent data from the Intellectual Property Commission (IPC), this paper compares and contrasts prior research on the topic of corporate digital technology innovation. It then assesses the impact of digital innovation on ESG performance, paying particular attention to the intrinsic motivations for innovation. The research confirms that substantial digital innovation may promote more excellent ESG performance, based on an example of Chinese listed businesses from 2012 to 2021, and furthermore, it demonstrates that the advancement of digital technology greatly enhances corporations’ environmental, social, and governance (ESG) performance. The paper goes on to say that IP protection and a development-oriented company strategy are crucial and that they may increase the beneficial effects of technological innovation in digital technology—particularly substantial innovation—on ESG performance. These results enrich research on the micro-level non-financial consequences of the internet economy, demonstrate the complicated link between process-based technical innovation and ESG performance, and offer approaches to boost corporate ESG participation.</p>