Drawing　on　data　from　publicly　traded　Chinese　companies　spanning　from　2009　to　2022,　this　article　investigates　the　multifaceted　impacts　of　executing　the　updated　Environmental　Protection　Law.　The　findings　suggest　that　the　updated　“Environmental　Protection　Law”　significantly　enhances　corporate　innovation　performance.　reflecting　the　policy＇s　role　in　promoting　sustainable　development　for　enterprises.　Furthermore,　ESG　investment　acts　as　a　mediating　factor　between　the　new　Environmental　Protection　Law　policy　and　the　outcomes　of　corporate　innovation,　with　this　mediating　effect　showing　significant　heterogeneity　between　high-pollution　and　low-pollution　enterprises.　Specifically,　high-pollution　enterprises　rely　more　heavily　on　ESG　investment　to　enhance　innovation　capabilities　under　the　policy＇s　impetus,　while　low-pollution　enterprises　exhibit　weaker　dependency.　Finally,　the　study　also　reveals　that　the　positive　impact　of　the　new　Environmental　Protection　Law　varies　significantly　between　China＇s　eastern　and　central-western　regions.　©　2025　The　Authors