From governance to performance: How sustainability strategy mediates corporate sustainability success

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Abstract

This study examines how sustainability governance influences sustainability strategies and how these strategies subsequently affect sustainability performance in Southeast Asian public companies. Sustainability governance is operationalized using two Refinitiv Eikon proxies: the presence of a sustainability committee and the use of sustainability assurance. Sustainability strategy is measured using the corporate social responsibility (CSR) strategy score, while sustainability performance is captured through Refinitiv’s environmental, social, and governance (ESG) score, a disclosure-based indicator widely used in prior research (Ma, 2024; Ghinizzini et al., 2025). The sample included 255 listed firms from Indonesia, Malaysia, Singapore, and Thailand. Descriptive statistics and analysis of variance (ANOVA) identify cross-country and industry differences, and structural equation modelling (SEM) with path analysis tests the hypothesized relationships. The results showed that governance mechanisms support the development of sustainability strategies, which subsequently enhance sustainability performance. These findings are consistent with agency and legitimacy theories and highlight the need for more standardized and substantive sustainability governance practices across the region.

Keywords: Sustainability, Strategy, Performance, Governance, Southeast Asia

Authors’ individual contribution: Conceptualization — A.P.; Methodology — A.P.; Software — A.P.; Validation — A.P. and R.F.I.; Formal Analysis — A.P.; Investigation — A.P.; Resources — A.P., N.D.T., and P.S.K.; Data Curation — A.P. and R.F.I.; Writing — Original Draft — A.P.; Writing — Review & Editing — A.P. and R.F.I.; Visualization — A.P.; Supervision — N.D.T. and P.S.K.; Project Administration — A.P. and L.R.M.; Funding Acquisition — A.P., N.D.T., and P.S.K.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: E16, G34, M41, Q56

Received: 21.06.2025
Revised: 21.11.2025; 23.02.2026
Accepted: 13.03.2026
Published online: 18.03.2026

How to cite this paper: Pratama, A., Ismail, R. F., Tanzil, N. D., Koeswayo, P. S., & Megawati, L. R. (2026). From governance to performance: How sustainability strategy mediates corporate sustainability success. Corporate Governance and Sustainability Review, 10(2), 102–113. https://doi.org/10.22495/cgsrv10i2p9