ESG　as　a　phenomenon　appears　to　be　consistent　with　high　quality　development　of　economy　of　country　like　China,　hence,　implementation　of　ESG　is　essential　to　embrace　sustainability.　Thus,　it　is　imperative　to　scrutinize　the　its　effectiveness　and,　in　this　lieu,　the　study　attempts　to　scrutinize　the　effectiveness　of　innovation　adoption　on　the　environmental,　social　and　governance　performance,　and　SBD　of　the　electric　vehicle　industry　in　the　context　of　China.　Along　with　it,　mediating　role　of　ESG　performance　has　also　been　explored　in　the　study.　Primary　data　was　collected　for　the　study　and　PLS-SEM　methodology　was　used　to　evaluate　the　collected　data.　Results　showcase　that　innovation　adoption　is　positively　correlated　with　ESG　performance　and　SBD　of　the　electric　vehicle　industry　in　China.　The　outcomes　also　exposed　that　the　ESG　performances　significantly　mediates　the　relationship　between　innovation　adoption　and　SBD.　In　the　light　of　the　evidence,　the　analysis　recommends　that　organizations　must　value　their　ESG　performance　in　order　to　formulate　relatable　policies.