This paper takes global manufacturing listed companies from 2010 to 2022 as samples and uses the difference-in-differences (DID) method to empirically examine the impact of the internationalization of ESG standards on the trade competitiveness of multinational enterprises and their mechanisms. The research finds that the internationalization of ESG standards significantly enhances the trade competitiveness of multinational manufacturing enterprises, and this effect is dynamic and sustainable. The mechanism analysis indicates that the internationalization of ESG standards exerts its influence through three pathways: reducing enterprise financing costs, promoting technological innovation, and enhancing brand reputation. The heterogeneity analysis shows that this effect is more significant in enterprises from developed countries, high-pollution industries, and larger enterprises. This paper provides micro-level evidence for understanding the economic consequences of the internationalization of ESG standards and offers policy implications for multinational enterprises to cope with the global ESG rule changes and enhance their trade competitiveness.