article · Social Responsibility Journal
Corporate sustainability in environmentally sensitive sectors depends heavily on internal leadership structures as well as broader national environments. An examination of international energy firms over a ten-year period demonstrates that dedicated firm-level bodies, specifically specialised sustainability committees and environmental management teams, directly improve environmental, social, and governance outcomes. In addition, national context plays a substantial role. Companies located in jurisdictions with robust regulatory quality and strong national environmental performance achieve superior sustainability results. Conversely, operating in countries marked by wider gender inequality reduces corporate sustainability performance. Overall, the evidence shows that effective governance mechanisms within organisations must align with sound public policy and gender equality initiatives across countries to achieve meaningful improvements in environmental and operational standards for energy businesses.
Energy companies face intense pressure to balance commercial operations with environmental responsibilities. Demonstrating that internal governance teams, strong national laws, and gender equality collectively improve sustainability provides valuable direction. This evidence helps corporate executives structure internal oversight, while guiding governments to design regulatory frameworks and social policies that foster cleaner, more responsible business practices in high-impact sectors.
These findings offer practical guidance for corporate leadership, governance advisors, and policymakers in the energy sector rather than a commercial product. The insights are ready for immediate organisational use, helping companies establish dedicated sustainability committees and environmental teams, or assisting regulators in refining environmental and equality standards. The abstract does not indicate a commercial technology pathway.
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Purpose This study aims to explore how firm-level and country-level sustainability governance can shape corporate sustainability performance. Design/methodology/approach This study uses an international sample of 2,460 observations from 2010 to 2019 for firms in environmentally-sensitive industries (i.e. energy). Various measures have been used to measure corporate sustainability performance, firm-level and country-level sustainability governance. This study uses a range of statistical models, including fixed effects, random effects, a two-step generalized method of moments, along multiple sensitivity checks to provide accurate empirical evidence. Findings A specialized sustainability committee and environmental management team enhance corporate sustainability performance. Likewise, a country’s regulatory quality and its environmental performance positively affect the sustainability performance of firms operating in this country. Besides, companies operating in a country with a higher gender gap have a lower corporate sustainability performance. Practical implications Energy firms should prioritize establishing sustainability committees or environmental management teams to enhance sustainability practices. Likewise, policymakers should develop robust regulatory frameworks that promote sustainability. Besides, countries should enforce policies promoting gender equality to enhance corporate sustainability. Originality/value This study contributes to the literature on environmentally-sensitive industries by examining both firm-level and country-level sustainability governance attributes using three proxies (environmental, social and governance, sustainability strategy and environmental performance) to measure sustainability performance, providing a holistic perspective of how governance attributes influence sustainability outcomes in energy industries.
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DOI: 10.1108/srj-02-2024-0088
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