Artificial intelligence and environmental auditing toward sustainable risk management: the complex moderating roles of ethical leadership and perceived greenwashing

Purpose Drawing on dynamic capability and agency theories, this study aims to examine how artificial intelligence capacity (AICA) influences sustainable risk management (SURM) through environmental audit effectiveness (EAEF) and how perceived greenwashing (PGWA) and ethical leadership (ETLE) jointly shape this relationship. Design/methodology/approach A moderated moderation and mediation model was tested using survey data from chief financial officers in Vietnam’s manufacturing sector. Findings AICA significantly improves EAEF, which in turn enhances SURM, confirming EAEF’s mediating role. PGWA positively moderates the AICA–EAEF relationship, and this effect is further strengthened by ETLE. Research limitations/implications The findings extend dynamic capability and agency theories by conceptualizing AICA and EAEF as dynamic capabilities and positioning PGWA and ETLE as governance mechanisms that mitigate agency problems in sustainability reporting. Practical implications The study highlights the importance of AI adoption, ETLE and regulatory enforcement in improving audit quality, transparency and reducing greenwashing. Originality/value This study introduces a moderated moderation model showing how PGWA and ETLE jointly strengthen the AICA–EAEF relationship. By framing them as complementary governance mechanisms rather than independent antecedents, it advances research on technology-enabled sustainability governance.