Sustainability practices and financial performance: a meta-analysis approach

Purpose This paper aims to examine the relationship between sustainability practices and financial performance, using accounting and market-based measures to integrate findings from diverse research while identifying the underlying reasons for discrepancies in results. Design/methodology/approach This study conducts a comprehensive meta-analysis of empirical studies published from 2010 to 2024, sourced from four major databases. The data set used 233,390 observations, the analysis uses combined effect sizes, publication bias detection, subgroup analyses and moderation regression analyses to synthesize research findings. Findings Descriptive and quantitative analyses confirm a positive significant correlation between sustainability practices and financial performance. However, introducing economic status as a moderator reveals that this correlation diminishes. Specifically, for every unit increase in economic development, the positive association between sustainability and financial performance decreases by 0.08, highlighting the nuanced nature of this relationship. Originality/value This paper offers a significant contribution by integrating economic status as a moderator in the sustainability–financial performance relationship. Unlike prior research, it uniquely analyzes the interaction between sustainability practices in diverse economic contexts. It provides actionable insights for businesses, enabling them to better align sustainability strategies with specific contextual factors to enhance financial outcomes. Furthermore, the findings are highly relevant for policymakers, as they reveal the nuanced effects of economic dynamics on sustainability’s financial impact, guiding the development of tailored regulatory frameworks. On a societal level, this research underscores the importance of sustainable business practices in fostering environmental conservation, improving social equity and driving economic development, thereby promoting a more inclusive and sustainable global economy.