This paper investigates the impact of aligning an innovation strategy with Environmental, Social, and Governance (ESG) practices on innovation and non-innovation performance variables. Drawing on principles from Stakeholder Theory and Social Network Theory of Innovation, the research hypothesizes that ESG-driven firms will outperform non-ESG-driven firms in terms of future innovation outcomes, labor productivity, exporting, and survival rates. Using the Technological Innovation Panel (PITEC) database, a panel of Spanish companies, the study compares the performance of two groups of innovative firms: ESG-driven companies (those that consider at least one ESG goal relevant for innovation) and non-ESG companies (those that consider all three ESG goals not important). The findings reveal that ESG-driven companies exhibit better future innovation performance and that their labor productivity, exporting, and survival rates are never inferior to those of non-ESG-driven firms. The paper contributes to the literature by analyzing non-financial performance indicators, including innovation outputs, labor productivity, exporting, and survival. It uses the PITEC database, which provides detailed information on innovation inputs and outputs of Spanish firms. The study employs matching to create a balanced sample of control firms based on pre-treatment characteristics, allowing for a more plausible causal inference. The results show a positive relationship between ESG-driven innovation strategies and better future innovation performance, as well as higher labor productivity, better exporting performance, and higher survival rates for ESG-driven firms. Theoretical contributions include supporting Stakeholder Theory by showing that prioritizing stakeholder interests and aligning them with ESG actions enhances innovation outcomes and performance metrics. The paper also links the Social Network Theory of Innovation with Stakeholder Theory, emphasizing that ESG-driven companies proactively engage with stakeholders, seek their input, and build trust through transparent communication, generating social capital that contributes to better innovation and firm performance. The study hypothesizes that ESG-driven companies will have better future innovation performance, higher labor productivity, greater export orientation, and higher survival rates compared to non-ESG-driven companies.This paper investigates the impact of aligning an innovation strategy with Environmental, Social, and Governance (ESG) practices on innovation and non-innovation performance variables. Drawing on principles from Stakeholder Theory and Social Network Theory of Innovation, the research hypothesizes that ESG-driven firms will outperform non-ESG-driven firms in terms of future innovation outcomes, labor productivity, exporting, and survival rates. Using the Technological Innovation Panel (PITEC) database, a panel of Spanish companies, the study compares the performance of two groups of innovative firms: ESG-driven companies (those that consider at least one ESG goal relevant for innovation) and non-ESG companies (those that consider all three ESG goals not important). The findings reveal that ESG-driven companies exhibit better future innovation performance and that their labor productivity, exporting, and survival rates are never inferior to those of non-ESG-driven firms. The paper contributes to the literature by analyzing non-financial performance indicators, including innovation outputs, labor productivity, exporting, and survival. It uses the PITEC database, which provides detailed information on innovation inputs and outputs of Spanish firms. The study employs matching to create a balanced sample of control firms based on pre-treatment characteristics, allowing for a more plausible causal inference. The results show a positive relationship between ESG-driven innovation strategies and better future innovation performance, as well as higher labor productivity, better exporting performance, and higher survival rates for ESG-driven firms. Theoretical contributions include supporting Stakeholder Theory by showing that prioritizing stakeholder interests and aligning them with ESG actions enhances innovation outcomes and performance metrics. The paper also links the Social Network Theory of Innovation with Stakeholder Theory, emphasizing that ESG-driven companies proactively engage with stakeholders, seek their input, and build trust through transparent communication, generating social capital that contributes to better innovation and firm performance. The study hypothesizes that ESG-driven companies will have better future innovation performance, higher labor productivity, greater export orientation, and higher survival rates compared to non-ESG-driven companies.