Purpose This study aims to critically examine the integration of big data analytics (BDA) into sustainability accounting, identifying thematic developments, methodological patterns and gaps that shape future research and practice. Design/methodology/approach A systematic literature review was conducted on 70 peer-reviewed articles published between 2017 and 2024. The study uses a structured analytical framework, text mining techniques and thematic coding to synthesize findings and identify research gaps. Findings The review reveals five key thematic clusters: supply chain and circular economy, artificial intelligence-enabled sustainability practices, climate change and sustainability accounting standards, stock returns and corporate transformation and environmental, social and governance (ESG) interactions. Significant research gaps are identified, with implications for academic inquiry, professional practice and regulatory policy. The study highlights the need to address fragmented reporting standards and technological barriers, emphasizing the urgency of aligned and data-driven ESG policies, robust assurance mechanisms and adaptive regulation. Originality/value This research seeks to provide methodological insights for interdisciplinary studies in sustainability accounting, integrating BDA. It explores the transformative potential of BDA to reshape sustainability reporting, assurance and policy development.

Purpose This study aims to examine the impact of the environmental, social and governance (ESG) guide revision on the quality of ESG disclosure among listed companies in Hong Kong. Design/methodology/approach This study uses a sample of 1,529 companies listed on the Stock Exchange of Hong Kong (SEHK) and uses an ESG disclosure quality scoring system to manually evaluate ESG disclosures for 2019 and 2020. Paired t-test, difference-in-difference (DID) regression using propensity scoring weighting samples, ordinary least squares regression and logistic regression are adopted in quantitative analyses. Findings The results of this study suggest that the overall ESG disclosure quality has improved slightly after the ESG Guide revision. The improvement in the ESG disclosure quality is more prominent for lagging-disclosure firms than leading-disclosure firms under the ESG Guide revision. ESG disclosure quality is positively related to audit quality. Practical implications This study provides insights into sustainability reporting practice in Asia and reveals that the effectiveness of ESG reporting regulations varies due to reporting regimes. Social implications The empirical evidence indicates that enhancing ESG disclosure quality can help to improve the transparency and comparability of non-financial information available to capital-market stakeholders. Originality/value The paper contributes to the extant ESG literature on the hybrid form (i.e. mandatory and comply-or-explain reporting provisions) of ESG reporting regulations and examines the real effects on ESG reporting revision guidelines after implementation.

Abstract Beef production systems have been evolving for more than a millennium with a primary focus on increasing efficiency. Recently, environmental, social and governance (ESG) concerns have become another key focus due to societal, consumer and regulatory pressures. We identify the temporal evolution of various beef production systems. Using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines, we assessed the ESG impacts of eight systems across five domains: natural capital; social capital; human capital; produced capital; and governance. This analysis includes 98 articles. Additionally, we conducted a strengths, weaknesses, opportunities and threats (SWOT) analysis. Regenerative grazing ranks high while landless industrialized system ranks low on all performance metrics. Silvopasture and pasture-based systems excel in community engagement. Biodynamic farming, certified organic and regenerative systems support livelihoods and demonstrate robust governance structures with active stakeholder engagement. Landless industrialized systems demonstrate strong corporate governance. This study provides policymakers with insights on promoting sustainable and ethical beef production practices.

ABSTRACT This study examines the interplay among CEO overconfidence, industry competition, and firms' ESG (Environmental, Social, and Governance) performance. With the growing importance of ESG management, firms are investing more in ESG initiatives as a strategic approach to mitigating downside risk. However, overconfident CEOs, characterized by their inclination toward risk‐taking, may be less likely to invest in ESG activities, thereby potentially undermining ESG performance. Utilizing panel regression analysis on data from U.S. manufacturing firms spanning 2002 to 2020, our findings reveal that firms led by overconfident CEOs tend to achieve significantly lower ESG performance scores, underscoring the detrimental effects of managerial overconfidence. Furthermore, the adverse impact is amplified in highly competitive industries, where restricted access to information and heightened uncertainty intensify the influence of CEO overconfidence. This study contributes to the literature by offering a nuanced understanding of how CEO behavioral traits interact with industry dynamics to shape ESG outcomes.

Purpose This study aims to examine the impact of environmental, social and governance (ESG) practices on the financial performance of family-owned firms in Mexico. It investigates explicitly whether ESG integration leads to improved outcomes and how the unique governance structures of family firms moderate this relationship. Design/methodology/approach This study utilizes panel data from 128 Mexican listed companies between 2014 and 2022, employing a fixed-effects model to examine the relationship between ESG practices and financial performance, as measured by returns on equity (ROE), return on assets (ROA) and operating margin. Family ownership is analyzed as a moderating factor, and robustness checks include dynamic Generalized Method of Moments (GMM) models and winsorization to control for outliers. Findings The results show that family firms integrating ESG – particularly environmental initiatives – exhibit significantly higher ROE and operating margins than nonfamily firms. However, the effect on ROA is selective, appearing only in robustness and subsample analyses. ESG adoption within family firms offers partial performance benefits, primarily through environmental and governance practices, which align with their long-term orientation and socioemotional wealth priorities. Originality/value This paper contributes to the literature by offering empirical evidence from an emerging economy, highlighting the nuanced impact of ESG integration on family firms. It advances socioemotional wealth theory in the context of corporate governance and sustainability, offering practical insights for investors, policymakers and family business leaders.

Purpose Building on the theoretical model of Albuquerque et al. (2018), this study analyzes the relationship between environmental, social and governance (ESG) performance and systematic risk. It examines how overall ESG scores and their individual pillars (ESG) relate to the asymmetric components of beta: Beta+ (sensitivity to market upswings) and Beta- (sensitivity to downturns). Design/methodology/approach Using a dataset of 9,643 firms from 89 countries, the study tests the ESG–risk relationship with pooled ordinary least squares and first-difference regressions to mitigate endogeneity concerns. Findings Contrary to the prevailing view that high ESG performance lowers risk, the results show that higher ESG scores are associated with greater systematic risk. ESG is positively and significantly related to both Beta+ and Beta-, suggesting that ESG performance amplifies firms' sensitivity to market movements. The effect is particularly strong during bull markets, while downside protection is limited. This pattern is consistent with demand-driven crowding into ESG assets and valuation premia that increase firms' co-movement with the market. Originality/value This study advances the literature by decomposing systematic risk into asymmetric betas and linking them to ESG performance. Unlike prior work focusing only on aggregate beta, this approach uncovers directional effects. The use of a large global sample and a first-difference design strengthens robustness, while the findings challenge the conventional assumption of ESG as downside insurance, showing instead that it may increase market covariance.

Purpose A quantitative research design was adopted using a Web-based survey targeting 290 Indian procurement experts across public and private sectors. The data were analyzed using SmartPLS 4.0, applying the Partial Least Squares–Structural Equation Modeling technique to test measurement reliability, structural relationships and moderating effects. Design/methodology/approach This study investigates the role of Big Data Analytical Capabilities (BDAC) in enhancing firms’ environmental, social and governance (ESG) performance, with a particular emphasis on the moderating effect of Green Finance (GF). It aims to uncover how data-driven capabilities and sustainable financial mechanisms jointly promote ESG outcomes among Indian procurement professionals. Findings The results reveal that BDAC significantly and positively influences all ESG dimensions, particularly Environmental Performance (EP) and Green Performance (GP). Although GF independently improves ESG outcomes, its effect is weaker than BDAC’s. Importantly, GF significantly moderates the relationship between BDAC and GP, but not with EP or Social Performance, highlighting a synergistic role in advancing environmentally driven outcomes. Practical implications The findings underscore that firms can strengthen ESG performance by simultaneously investing in big data analytics and green financing instruments. Managers and policymakers should encourage data-driven sustainability monitoring and facilitate access to green funds to support environmentally responsible procurement and corporate governance practices. Originality/value This study extends the Resource-Based View Natural Resource-Based View and Resource-Dependence Theory by integrating technological and financial resources as complementary drivers of sustainability. To the best of the authors’ knowledge, this study is among the first to empirically examine this interaction in the context of Indian procurement experts, a critical yet understudied domain.

In response to the severe challenges posed by global warming and extreme weather events, China has established the “dual carbon” goals through a comprehensive policy framework that integrates economic development with environmental sustainability. Against this backdrop, Chinese listed companies, as key economic players, have become the main force in carbon emission reduction. This study explores key factors influencing financial default risk of listed companies in China based on the Explainable Artificial Intelligence (XAI) framework. The study selects indicators from six dimensions: corporate carbon emissions, environmental, social and governance (ESG) scores, distance to default, management discussion and analysis (MD&A), investor sentiment, and financial indicators. To address the category imbalance problem due to the scarcity of samples of special treatment (ST) companies, three techniques—random Oversampling, adaptive synthetic sampling (ADASYN), and synthetic minority oversampling (SMOTE)—are comprehensively tested, and the performances of six machine learning models are evaluated, with results showing that the prediction effect of Explainable Boosting Machine (EBM) and eXtreme Gradient Boosting (XGBoost) is optimal. By introducing Shapley values for global, local, and interaction visualization analysis, not only was the order of feature importance identified as follows: financial indicators > MD&A > ESG > positive investor sentiment > corporate carbon emissions, but also the cut-off points of FAC1 (−0.8385), MD&A (0.0405), and ESG (6.21) within the financial indicators were discovered, providing a quantitative basis for assessing corporate sustainability.

Purpose Previous studies have focused on the financial effects of environmental, social and governance (ESG) practices but have overlooked non-financial aspects. This study aims to address this gap for the construction industry, with its resource and labour dependence, diverse stakeholders and complex governance. It examines ESG effects on Chinese construction enterprises' competitive advantage (CA) from financial and non-financial perspectives and explores innovation's mediating role under environmental uncertainty (EU). Design/methodology/approach Through structural equation modelling and regression analysis, this study examines ESG effects on CA and their mediators. Data are collected through a survey of Chinese construction enterprises. Findings (1) The environmental dimension and governance dimension enhance CA, whereas the social dimension has no significant effect. (2) Enterprise innovation mediates this relationship, with business model innovation (BI) and technological innovation (TI) playing distinct roles. (3) EU negatively moderates innovation's effect on CA. Originality/value This study expands the theoretical framework by integrating non-financial aspects into ESG's effect on CA. The findings offer insights into how ESG fosters CA through innovation, with distinct roles for the ESG dimensions and emphasise the need for adaptive innovation strategies in uncertain environments.

This paper investigates how banks’ Environmental, Social and Governance (ESG) performance interacts with national climate policy to shape bank credit, as measured by net loans. Using an unbalanced panel of 389 listed commercial banks from multiple countries over the period 2010–2023, we combine bank- level ESG and financial data with the Climate Change Performance Index (CCPI), a synthetic indicator of the ambition and effectiveness of national climate policy. The results of the two-step System-GMM show that, on average, stronger ESG performance and stricter climate policy are associated with a more cautious expansion of net loans. However, the positive, statistically significant interaction between ESG and CCPI indicates that the adverse baseline effect is attenuated as climate policy becomes more ambitious. Overall, the findings suggest that ESG alone is not a sufficient driver of green credit; its effectiveness as a conduit for sustainable lending critically depends on the broader climate policy framework.

Purpose This study aims to investigate how consumers’ perceptions of exporting firms’ environmental, social and governance (ESG) activities shape trust and corporate reputation and how these, in turn, relate to consumer-based performance intentions in an export context. It also explores whether perceived firm size conditions these links and highlights digitally encountered, verifiable cues (e.g. certifications and origin labels). Design/methodology/approach Survey data from 320 Korean consumers were analyzed via a confirmatory factor analysis-structural equation modeling sequence using covariance-based structural equation modeling (AMOS) as the primary estimator; multigroup comparisons were conducted by perceived firm size; Partial Least Squares Multi-Group Analysis (PLS-MGA) and bootstrapping were employed as robustness checks and to assess indirect effects, respectively. Findings ESG perceptions are positively associated with trust and reputation, and these intermediaries are linked to performance intentions. Mediation via trust and reputation is supported. Several paths differ by perceived firm size, indicating that the impact of ESG communications is contingent on organizational scale. Research limitations/implications Single-country, self-reported data and cross-sectional design limit generalization; future work could include behavioral metrics and multi-country samples. Practical implications Managers should align ESG communication with credibility cues that build trust and reputation, tailoring messages by firm size; policymakers and educators can strengthen verification and ESG communication capabilities. Originality/value By situating ESG signaling in export scenarios (with origin labels and third-party certifications), the study disaggregates ESG perceptions, integrates mediation and boundary-condition logic at the consumer level and specifies implications for exporters.

It is crucial to understand how environmentally friendly investments are interrelated with commodity futures. This study examines the quantile connectedness among global environmental, social and governance (ESG) stocks and commodities using the quantile vector autoregression (QVAR) approach on data spanning from May 2017 to April 2024. The findings exhibit higher return spillover in lower and upper quantiles and less spillover in the median quantile. Furthermore, during the COVID-19 pandemic and the Russia–Ukraine war, connectedness has increased among ESG stocks and commodities in all market conditions. Further analysis indicates that Europe ESG leaders (EU_ESG) and USA ESG leaders (US_ESG) serve as diversifiers in all market scenarios, but world ESG leaders (WL_ESG) act as a diversifier just in the natural market. Emerging markets ESG leaders (EM_ESG) generally function as a risk absorber and, in calm times, act as a hedge against developed ESG shocks. Finally, gold functions as a safe haven in crises for environmentally friendly investments. Our findings provide valuable information to investors, policymakers and portfolio managers regarding portfolio diversification. JEL Classifications: O16, C58, C61, G41

Purpose In Saudi Arabia, the dynamics between family and foreign ownership in the business landscape are shaped by the country’s regulatory environment. Family businesses are characterised by strong family ties, long-term planning and a focus on legacy. Also, foreign ownership is growing rapidly due to economic reforms and liberalisation. This study aims to investigate the influence of family and foreign ownership on firms’ environmental, social and governance (ESG) performance in Saudi Arabia. This study also examines the moderating effect of board structure on investment choices related to the ESG of family and foreign ownership that exists within the Saudi capital market. Design/methodology/approach This study uses data from 101 companies listed on the Saudi Stock Exchange covering the period 2016–2022. The authors collect ESG scores, foreign and family ownership and board structure variables from the Refinitiv Eikon database. The authors use ordinary least squares regression to conduct the results. Findings The results show a significant and positive association between family ownership and ESG performance. In contrast, foreign ownership is significant and negatively associated with ESG performance. Board structure reinforces the negative association between foreign ownership and ESG performance. However, it has no moderating role on the positive impact of family ownership on ESG performance. Originality/value Unlike prior studies that provided a more holistic view of the role of the ownership structure of a company in enhancing disclosure and governance practices in the Saudi context, this study focuses on two distinct categories of ownership, i.e. family and foreign ownership, and examines their effect on ESG performance. This study aims to provide an empirical investigation of the Saudi-listed firms in light of Vision 2030. Evidence highlights the unique cultural, institutional and regulatory context of Saudi Arabia. While family owners may prioritise social responsibility, foreign investors tend to prioritise short-term financial returns over long-term ESG goals. Vision 2030 is a key driver of ESG adoption, but challenges remain, and it will require some time to align local practices with global expectations.

Purpose This paper aims to address the integrity gap in current environmental, social and governance (ESG) frameworks regarding the divide between firms’ environmental performance and their fiscal behaviour. Design/methodology/approach This study uses a critical-theorist research design underpinned by a systematic literature review methodology to develop a novel conceptual model, using the theory-building approach, which links tax footprint to climate policy coherence as well as how corporate fiscal commitment affects ESG integrity and legitimacy, using the lens of institutional, legitimacy and political economy theories. It integrates existing knowledge and identifies gaps that warrant new theoretical constructs. Findings This conceptual paper finds that a firm’s tax footprint encourages corporate fiscal commitment and climate policy coherence. Tax footprint drives climate policy coherence through corporate fiscal commitment. Greater corporate fiscal commitment strengthens ESG integrity and legitimacy. The findings imply that without a clear application of fiscal aspects, the ESG frameworks would unintentionally support greenwashing and cause policy incoherence. The proposed model explains how open tax activities strengthen corporate credibility and increase the capacity of the population to access climate finance. Research limitations/implications The proposed model reveals five theoretical suppositions that can undergo empirical testing in subsequent research. Practical implications Firms should align their tax behaviours with climate goals to reinforce stakeholder trust and governance integrity. Regulators and standard setters should embed fiscal indicators, such as tax footprint, in ESG reporting to enhance accountability in sustainable finance. ESG rating agencies should incorporate fiscal legitimacy as a distinct evaluation pillar. Governments negotiating climate finance commitments should recognise that corporate fiscal responsibility directly affects national capacity to fund adaptation and mitigation. Social implications This study enhances public resource availability for climate action. It exposes how firms can appear environmentally responsible while depleting tax revenues through fiscal opacity. It highlights direct harm to citizens who depend on public funding for education, healthcare and climate adaptation. The proposed fiscal legitimacy framework strengthens the social contract between communities and firms. Originality/value This conceptual study challenges existing studies that treat tax behaviour as an outcome or a moderating variable. It introduces “fiscal legitimacy” as a new theoretical construct, arguing that tax transparency ought to be an autonomous dimension of ESG. The study goes beyond practical guidance on tax transparency and develops a theoretical conceptual model that positions tax behaviour as a prerequisite for climate policy coherence under Sustainable Development Goal 13.

Purpose Spillovers in the environmental, social and governance (ESG) markets are crucial for evaluating contagion risks and sustainable investments. This study aims to examine risk spillovers in China’s ESG stock market and explores their impact mechanisms. Design/methodology/approach Previous research mainly employed the Diebold and Yilmaz (DY) (2012) connectedness model to construct connectedness networks and measure spillovers. However, this approach only captures linear relationships and faces the “curse of dimensionality”. To overcome these limitations, we propose a hybrid framework that integrates the random forest with DY. Additionally, the time-varying parameter vector autoregressive model with stochastic volatility model is applied to investigate the underlying impact mechanisms. Findings First, China's ESG stock market shows notable risk spillovers across firms, industries and regions. Second, systemically important entities include financial institutions, large-scale infrastructure, and leading liquor firms; the industrial, finance, information technology and optional consumption industries and the Eastern and Southern coastal regions. They play a key role in the network and are primary spillover sources. Third, macroeconomic information, geopolitical risks and climate policy uncertainty significantly influence spillovers, with stronger short-term effects. Originality/value First, we propose a hybrid framework that excels at measuring high-dimensional and nonlinear spillovers. Second, we expand the body of ESG research in emerging markets. Third, we explore spillover mechanisms, unveiling how key factors affect risk spillovers in the ESG stock market.

Purpose Despite growing global emphasis on environmental, social and governance (ESG) principles, South African corporate real estate and facility management practices are not aligned with ESG frameworks. This study examined the understanding, prioritization and implementation of ESG principles within the context of South Africa’s facility management (FM) and corporate real estate management (CREM). Design/methodology/approach The study adopted a qualitative research approach, comprising a focus group discussion session with FM/CREM professionals. The emergent data were analyzed thematically using Atlas.ti software for a comprehensive interpretation of the findings. Findings The study’s findings underscore the critical role that FM/CREM professionals play in operationalizing ESG principles, particularly through the adoption of innovative technologies such as building management systems (BMS). However, the findings also reveal that ESG implementation within the FM/CREM context tends to be reactive, driven largely by client expectations. Additionally, the findings identify several barriers to effective ESG implementation, including financial and infrastructural constraints, regulatory complexities and resistance to change, challenges that are especially pronounced among small- and medium-sized enterprises (SMEs). Despite these impediments, the findings highlight opportunities for enhancing ESG outcomes through proactive stakeholder engagement and a sustained commitment to continuous improvement. Practical implications The study’s findings underscore the importance of developing tailored ESG implementation frameworks that emphasize business objectives whilst meeting modern sustainability goals. It also confirmed the pivotal role of FM/CREM professionals in the implementation of ESG principles and ensuring regulatory compliance. Originality/value Besides contributing to a better understanding of ESG principles in the built environment, the study provides practical recommendations for improving ESG implementation performance by FM and CREM professionals.

Purpose This paper aims to examine the relationship between human rights practices and firm market and financial performance and the moderating role of Environmental, Social and Governance (ESG) practices. Design/methodology/approach The authors use ordinary least squares regression as a baseline methodology on US-listed firms from 2002 to 2023 and generalized method of moments estimation to account for endogeneity concerns. Findings The results indicate that firms’ human rights practices are significantly associated with market performance and return on assets. Additionally, ESG practices significantly moderate the relationship between human rights practices and firm performance. Human rights performance has a greater impact on market performance when moderated by ESG practices. Research limitations/implications This study contributes to the academic discourse by exploring the complex relationship between human rights and ESG performance. Identifying human rights practices as a social cost has intrinsic value for firms, driving toward desirable levels of human rights practices within corporate governance systems, consistent with stakeholder and social exchange theories. Originality/value This study provides novel insights into the interactive effects of human rights and ESG factors on firms’ market and financial performance, offering a deeper understanding of how these elements collectively shape corporate outcomes.

This research examines Premysis Consulting’s strategic diversification into sustainability and ESG (Environmental, Social, and Governance) consulting using an internal–external fit approach. The study explores how the firm’s ISO-based consulting expertise can be leveraged to enter Indonesia’s emerging ESG market, driven by POJK 51/2017 and increasing stakeholder expectations. A qualitative exploratory method was applied, incorporating internal interviews, six external client discussions, and a focused group discussion (FGD). The PESTEL and VRIN–RBV analyses reveal that while Premysis possesses valuable assets such as strong client trust, a structured methodology, and regulatory competence, the firm faces capability gaps in ESG-specific technical skills, digital tools, and innovation diffusion. Thematic findings identify four market segments: Compliance-Oriented, Transformation-Focused, Mid-Sized/Underserved, and Innovation-Oriented clients. Among these, the Transformation-Focused and Mid-Sized segments present the most strategic opportunities. The study recommends a hybrid business-level strategy, combining focused differentiation for transformation clients and cost leadership for SMEs. ESG diversification is deemed viable if supported by talent upskilling, digital integration, and partnership-based positioning. This research contributes to the sustainability consulting literature by demonstrating how internal–external alignment enables consulting firms to evolve from compliance-driven services toward strategic ESG advisory.

Subject of study. Integration of environmental, social and governance (ESG) principles into business models and strategies of enterprises in the context of modern challenges of sustainable development. The aim of the study. The purpose of the article is to study current trends in the implementation of environmental, social and governance (ESG) principles in the context of sustainable development. Research methods. Researching the impact of ESG principles on sustainable development requires the use of a variety of methods: сase studies, statistical analysis, comparative analysis, content analysis, to analyze company reports for ESG initiatives, studying their connection with modern sustainable development trends. Results of work. Environmental, social and governance (ESG) principles have become extremely relevant in the face of global challenges such as war, climate change, social and economic inequality. The implementation of ESG in business practices ensures sustainable development and competitiveness. The growing interest of investors in ESG factors indicates their importance in making investment decisions. Investments in companies with high ESG indicators are becoming more attractive due to the potential to reduce risks and improve financial results. The integration of social practices into the business model increases the level of trust from consumers, employees and partners. This contributes to improving working conditions, strengthening communities and supporting socially responsible initiatives. The implementation of environmentally friendly technologies and practices allows companies to reduce their environmental impact, which is key to achieving sustainable development goals. This includes reducing emissions, optimizing resource use and preventing pollution. It is necessary to take into account the numerous challenges associated with the implementation of ESG, such as the lack of uniform standards, insufficient transparency of reporting and incompatibility of interests of different stakeholders. Successful integration of ESG will require a change in the mentality and actions of all participants. The development of public policies that support ESG initiatives is an important component for stimulating sustainable development. This can include financial incentives, subsidies for "green" investments and raising awareness of the benefits of ESG. In the future, the importance of ESG is expected to further increase in all areas of business. Companies that ignore these factors risk losing competitive advantages, while those that actively implement ESG can become leaders in their industries.

Purpose This study aims to examine the relationship between environmental, social and governance (ESG) initiatives, board gender diversity and stock price volatility (PVOL) among FTSE 100 firms from 2015 to 2023. Specifically, it investigates whether board gender diversity moderates the ESG volatility relationship, thereby enhancing financial stability. Design/methodology/approach A panel data analysis is conducted using ordinary least squares (OLS), two-stage least squares (2SLS) and generalized method of moments (GMM) regressions to account for potential endogeneity and strengthen the robustness of results. This study leverages instrumental variables (IVs) to control for omitted variable bias and reverse causality, ensuring reliable empirical insights. Findings The results show that stronger ESG performance significantly reduces volatility (PVOL), and this stabilizing effect is amplified in firms with more gender-diverse boards. These findings remain consistent when volatility is assessed using realized volatility (RLZDVOL), confirming that the results are not merely artifacts of volatility specification. This evidence underscores the complementary roles of ESG and gender diversity on boards in strengthening corporate stability. Practical implications The findings emphasize the strategic importance of ESG integration in corporate governance and risk management. They also highlight the role of gender-diverse leadership in promoting financial stability and enhancing the confidence of investors. These insights are valuable for corporate executives, policymakers and investors, advocating stronger ESG policies, improved board diversity mandates and more sustainable investment strategies. Originality/value This study fills a critical gap in the literature by linking ESG factors to stock price volatility and highlighting the moderating role of board gender diversity. This study provides new evidence of how board mechanisms can enhance ESG effectiveness and contribute to long-term market stability. This study offers novel insights into sustainable finance, corporate governance and investment decision-making.