Environmental Risk Management, Green Chemistry Adoption, and Competitive Advantage in Industrial Organizations: A Comprehensive Review of the Chemical and Pharmaceutical Sectors

ABSTRACT Industrial organizations operate in an increasingly complex environment where environmental stewardship, regulatory compliance, and market competitiveness intersect. This review synthesizes current evidence on how integrated environmental risk management and green chemistry adoption contribute to sustainable competitive advantage in industrial settings, with particular emphasis on chemical and pharmaceutical manufacturing. The analysis examines the evolution of environmental risk frameworks from end of pipe controls to proactive, systems‐based governance approaches. It evaluates green chemistry principles, metrics, and implementation pathways, highlighting technical innovations in solvent selection, process intensification, and digital enablement. Empirical evidence linking sustainability practices to cost efficiency, innovation capacity, regulatory resilience, and access to capital is critically assessed. The review identifies converging paradigms, including safe and sustainable by design, circular economy principles, and responsible research and innovation as critical enablers of scalable adoption. Practical implications for managers include prioritizing cross functional collaboration, investing in metrics driven decision support, and aligning sustainability initiatives with core business strategy to ensure long term value creation. Policy recommendations emphasize coherent regulatory frameworks, support for technology diffusion, and multi stakeholder platforms for knowledge exchange. This synthesis provides a foundation for future research on adoption pathways, performance measurement, and context sensitive implementation models across industrial sectors.