In the era of the digital economy, digital transformation profoundly influences the sustainable development performance of enterprises. Listed manufacturing companies in China from 2010 to 2023 was selected as the research sample and constructs a scientific measurement framework for corporate sustainable development performance by integrating financial and environmental social responsibility performance. Through theoretical deduction and empirical testing, the results indicate that digital transformation directly fosters a synergistic improvement in both financial and environmental social responsibility performance, thereby enhancing overall corporate sustainable development. These findings remain robust after robustness checks. Furthermore, digital transformation indirectly boosts sustainable development performance by fostering green collaborative and green balanced innovations. The analysis also reveals that the moderating role of environmental dynamism varies by innovation type. It significantly moderates the relationship between green balanced innovation and corporate environmental social responsibility performance but has no significant effect on the link with financial performance. In contrast, regarding green collaborative innovation, environmental dynamism exerts a significant moderating effect on both financial and environmental social responsibility performance. It provides new empirical evidence regarding digital transformation and sustainable development in China and enriches the theoretical understanding of green innovation.