The externality nature inherent in corporate ESG (Environmental, Social, and Governance) endeavors results in suboptimal ESG investment levels. Entrepreneurial endeavors offer a fresh lens through which to capitalize on the digital transformation wave, bolstering firms’ capacity to execute ESG practices and harnessing latent internal strengths. Drawing on a cohort of Chinese manufacturing firms spanning 2018 to 2022, this study introduces intermediary constructs encompassing entrepreneurial innovation, societal responsibility, and an entrepreneurial eco-conscious mindset, to scrutinize the effects and underlying mechanisms of digital transformation on corporate ESG outcomes. The findings underscore that digital transformation serves as a catalyst, significantly enhancing corporate ESG performance. Furthermore, the mediation analysis reveals that this enhancement stems from fostering entrepreneurial innovation and societal responsibility, whereas it may be dampened by a diminished entrepreneurial environmental stewardship mindset. These insights offer empirical foundations for shaping digital development strategies and optimizing ESG performance within the entrepreneurial business landscape.