Authors:

N. Abdioglu1, S. Aytekin2

1 Bandirma Onyedi Eylul University, Balikesir, Türkiye; 2 Balikesir University, Balikesir, Türkiye

Abstract:

Corporate sustainability has gained increasing importance as firms face governance challenges and climate-related risks. Yet the joint impact of these factors remains insufficiently examined, creating a gap between theoretical propositions and empirical evidence. The study aims to investigate the relationship between firms’ ESG performance and three determinants of corporate sustainability: climate change commercial risk opportunities, CEO-Chairman duality, and board gender diversity. Methodologically, the research rests on stakeholder theory, agency theory, and sustainability management. The study applies econometric analysis using the fixed effect regression with Driscoll–Kraay standard errors. The materials include firm-level sustainability data for 910 companies from seven advanced European economies for 2018–2023. The results suggest that firms engaging in the development of products or services aimed at addressing climate-related risks tend to exhibit stronger sustainability performance. In contrast, CEO-Chairman duality is linked to weaker sustainability outcomes, whereas higher levels of female representation on corporate boards are associated with enhanced sustainability performance. The three determinants are found to have the similar effects on corporate governance efficiency. Hence, firms that embrace these elements not only improve sustainability metrics, but also strengthen financial performance, competitiveness, and long-term resilience. The study contributes to the literature by clarifying the mechanisms, through which governance structures and climate strategies jointly influence corporate sustainability.

Keywords: corporate governance; ESG performance; sustainability; corporate social responsibility; climate innovation; CEOChairman duality; board gender diversity

For citation: Abdioglu N., Aytekin S. (2026). Governance and climate-related drivers of corporate sustainability. Upravlenets / The Manager, vol. 17, no. 3, pp. 36–53. DOI: 10.29141/2218-5003-2026-17-3-3. EDN: HLNYEJ.

Article info: received September 17, 2025; received in revised form December 29, 2025; accepted March 19, 2026