Developing a measurement for corporate environmental sustainability in relation to the UN Sustainable development goals

Abstract Despite extensive research on business contribution to the Sustainable Development Goals (SDGs) and environmental sustainability, the conceptualization, operationalization and empirical evaluation of these constructs remain challenging. This study aims to develop a cross-SDG measurement instrument for corporate environmental sustainability evaluation which is conceptually based on the United Nations (UN) SDGs implementation at the organizational level with a focus on the environmental dimension. By adopting a stakeholder-oriented approach, the instrument is designed to assess employee perceptions of the environmental sustainability in the organization. The measurement instrument is validated on five independent samples consisting of 348 responses in total, with 199 responses from manufacturing and 149 from service organizations. By employing data reduction techniques and Partial Least Squares Structural Equation Modeling (PLS-SEM) as a two-step measurement evaluation process, the paper performs robust measurement validity testing. Combining exploratory and confirmatory procedures the study validates a perceived corporate environmental sustainability measurement as a rigorous, multidimensional instrument adapted for manufacturing and service organizations. Thus, it contributes to the scholarship by providing an instrument for management and sustainability scholars to assess UN SDG implementation in organizations from the environmental sustainability perspective. This study has important practical implications by providing organizations the measurement instrument to benchmark and strategically improve their environmental positioning based on the perceptions of their employees as internal stakeholders.