ALIGNING ESG, SDGS, AND FIRM PERFORMANCE: LESSONS FROM PRACTICE

Sustainability has become a defining element of contemporary business agendas, with governments, investors, and consumers increasingly demanding that organizations contribute to solving global challenges. Yet, despite the prominence of sustainability discourse and the adoption of international frameworks such as the United Nations Sustainable Development Goals (SDGs), progress remains alarmingly slow. As of 2023, none of the 17 SDGs have been fully achieved globally, underscoring the persistent gap between ambitious global commitments and their practical realization at the organizational level. Firms are therefore confronted with the dual challenge of aligning with international sustainability imperatives while simultaneously addressing pressing issues such as resource scarcity, the need for innovation, and the management of human capital. This article seeks to examine how sustainability principles are concretely translated into firm-level strategies and practices, focusing on the adoption of sustainability frameworks, the measurement of outcomes, and the implications for both organizational performance and long-term competitiveness. The study employs a twofold methodological approach: a systematic literature review to synthesize theoretical perspectives and empirical findings across diverse contexts, and expert interviews with representatives of the tourism and hospitality industry, a sector uniquely exposed to environmental, social, and economic pressures. This dual perspective allows the research to uncover how sustainability is operationalized, which practices and innovations are most effective, and what barriers hinder progress. The findings reveal that sustainability is not only a strategic necessity imposed by external pressures but also an emerging source of innovation, efficiency, and value creation. Smaller firms tend to rely on community based initiatives and incremental improvements, whereas larger organizations adopt structured ESG (Environmental, Social, and Governance) platforms supported by technology and global benchmarks. At the same time, the research highlights persistent challenges, including fragmented measurement systems, behavioural barriers, and the need for greater stakeholder engagement. By bringing together theoretical insights and practical examples, this study contributes to bridging the gap between global sustainability principles and firm-level realities. It provides evidence-based recommendations and practical pathways for organizations that aspire to embed sustainability into their strategic core, demonstrating how firms can simultaneously strengthen competitiveness, ensure resilience, and contribute to the achievement of global sustainability goals.