Determinants of Firms’ Sustainable Development Goals Alignments: Empirical Insights from the Middle East Green Initiative

This study examines the determinants of firms' sustainable development goals alignments in the Gulf Cooperation Council (GCC), focusing on the Middle East Green Initiative (MEGI) launched on March 27 March 27, 2021.This initiative aims to combat climate change by intensifying efforts and fostering regional cooperation.The study data are extracted from two sources, Refinitiv Eikon Database and the World Bank, from 2020 to 2023.The study sample comprises 138 firms with 552 observations (firms*years) comprising firms from 6 Gulf countries.The panel fixed effect model is utilized to estimate the results.Results reveal that only one economic factor (GDP Growth) significantly and positively affects the disclosure of Sustainable Development Goals made by firms in the Gulf Region.Similarly, the Middle East Green Initiative has a positive and significant effect.Regarding non-economic factors, results show that while board independence positively affects Sustainable Development Goals disclosure, board tenure has a significant negative impact.The study bridges an existing gap by providing empirical evidence on SDGs disclosure in the Gulf Region, highlighting how governmental programs affect firms' alignment with SDGs.