Environmental, social, and governance (ESG) performance is an essential indicator of sustainable corporate behaviour that balances short-term gains with long-term societal growth and ecological preservation. We scrutinise the influence of ESG performance on corporate risk-taking and the resulting impacts on firm productivity. Using data from Chinese listed firms from 2009 to 2020, our analysis indicates a significant negative relationship between corporate ESG performance and risk-taking, with a resultant increase in total factor productivity. Regional green innovation and environmental regulatory frameworks significantly augment the effects of ESG performance on risk management. The results extend the understanding of the intricate role of ESG commitments in risk management, and offer constructive insights for corporate decision-making and policy development aimed at confronting the environmental challenges of the 21st century.