Unlike previous studies mainly focused on the economic impact of green innovation, this paper explores its social returns, denoted by the stakeholder engagement, given stakeholders can affect or are affected by the firm's low-carbon transition. Drawing on the complementary view and the substitute view, our empirical results from China over the sample period of 2012 to 2018 found that more green innovation would crowd in stakeholder-related activities, especially for the welfare improvement of customers and suppliers. However, better stakeholder relations do not bring positive economic returns given the weak social pressures and uncertain rewards for being socially responsible in emerging countries. By doing so, our study expands the theoretical knowledge about the social impact of green innovation, thus offering a practical guidance for firms to simultaneously manage their environmental performance, social performance and economic performance in China and, potentially, in other emerging countries which also pursue environmental transition and better stakeholder management.