Purpose This study aims to assess the relationship between environmental, social and governance (ESG) strategy and sustainable performance, in addition to exploring the mediating role of green innovation in this connection. Moreover, age, size and membership in a Protected Designation of Origin are incorporated as control variables to increase the precision of the relationships examined. Design/methodology/approach A conceptual model was created to meet the intended research objectives and then validated using partial least squares structural equation modeling with primary data obtained from a survey administered to 196 Spanish wineries, which took place between September 2022 and January 2023. Findings The study findings indicate that the implementation of an ESG strategy has a positive and significant relationship with the sustainable performance of wineries. In addition, green product and process innovation appear to partially mediate this relationship. Research limitations/implications The sample size (196 wineries) limits the generalizability of the findings to the population under study, which suggests caution in their interpretation. In addition, the cross-sectional design of the study prevents from observing dynamic changes over time. Originality/value This research significantly advances the understanding of ESG strategy through a holistic view of its relationship with the sustainable performance of the wine industry. Indeed, it fills a critical gap in the academic literature, as ESG strategy has been scarcely explored in the wine industry setting, despite the specific environmental and social challenges faced by this sector. Furthermore, it pioneers the investigation of green innovation as a mediating factor in the relationship between ESG strategy and sustainable winery performance, providing new findings that can shape strategic management practices in the wine sector.