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Article Abstract

International Journal of Trends in Emerging Research and Development, 2024;2(6):103-111

Evaluating the Financial and Environmental Payoff of Corporate Sustainability Strategies

Author : Oghenerume Augoye, Titilayo Priscilia Muyiwa-Ajayi and Adedamola Sobowale

Abstract

This study evaluates the financial and environmental impacts of corporate sustainability strategies across various industries, with a focus on identifying pathways that align profitability with environmental stewardship. As environmental, social, and governance (ESG) criteria gain prominence among stakeholders and regulatory bodies, corporations face increasing pressure to implement sustainable practices that not only reduce their ecological footprint but also enhance long-term financial performance. This review examines several key sustainability strategies, including carbon footprint reduction, resource efficiency, waste minimization, and renewable energy adoption, and assesses their financial viability and return on investment (ROI). Drawing from recent case studies and empirical data, we identify a positive correlation between effective sustainability strategies and improved financial metrics, such as operational cost savings, risk mitigation, and enhanced brand value. Furthermore, we explore the environmental benefits associated with these strategies, such as reduced greenhouse gas emissions and resource conservation, and discuss how these gains contribute to broader societal goals, including the United Nations Sustainable Development Goals (SDGs). The findings emphasize that while initial investments in sustainability initiatives can be substantial, companies adopting long-term perspectives often realize significant financial and environmental payoffs, supporting the case for integrated sustainability planning as a core component of corporate strategy.

Keywords

Corporate sustainability, financial performance, environmental impact, renewable energy, resource efficiency