Sustainability transitions in corporations: The influence of the sustainable development goals on corporate financial performance
Year: 2025
Type: article
Abstract: Interest is growing in how corporations adopt SDGs, though understanding of their impact on business performance remains limited. Identifying the conditions under which goal-setting governance accelerates sustainability transitions is crucial. This study investigates the influence of SDG 13 on Malaysian corporations’ financial performance, examining whether implementing and voluntarily disclosing SDG 13 information positively affects outcomes. Findings suggest that SDG 13 adoption enhances financial performance, with voluntary sustainability disclosures providing shareholders and the public insight into corporate sustainability efforts. This reduces information asymmetry between businesses and potential investors, potentially increasing investor confidence. The positive correlation between SDG adoption and performance may encourage broader SDG engagement, as performance gains may drive investor to demand for more SDG alignment. Overall, the study concludes that conditions such as voluntary disclosure positively affect the sustainability transition of corporate actors by demonstrating a positive impact on their performance.
Source: Earth System Governance
Authors: Xue Ruo Ng, Shirin Malekpour, Rob Raven
Institution: Monash University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $2,180
OpenAlex ID: W4415017199