<p>Based on Resource-based theory and Organizational ambidexterity theory, this study examines the effects of corporate digitalization on environmental, social, and governance (ESG) performance and dual innovation, and explores the mechanism linking them. The results show that digitalization facilitates ESG performance and dual innovation. Dual innovation serves as a significant mediator as digitalization enhances ESG performance. Heterogeneity discussion indicates that in labor-intensive industries and without executives with financial backgrounds, exploitative innovation has a higher mediating effect between digitalization and ESG practices. In capital-intensive industries and with executives with financial backgrounds, exploratory innovation shows a higher mediating effect between digitalization and ESG practices. Finally, it is suggested that government departments guide enterprises to establish digitally-driven systems, consider both exploitative and exploratory innovations, and improve ESG performance. Enterprises enhance the capacity of digital technologies to enable dual innovation. Based on differentiated capital intensities and executive financial backgrounds, and in accordance with resource endowments, enterprises align with market demands, focus on the matching of exploitative and exploratory innovations, and thereby enhance ESG performance and market competitiveness. This study helps to clarify the pathways through which digitalization enables ESG practices, providing “targeted” support for ESG practices and promoting economic development. </p>