ESG performance and audit committee expertise: advancing sustainable development goals in leading nations

Fourth Author's Department

Economics Department

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https://doi.org/10.1016/j.iref.2025.104445

All Authors

Muskan Sahu Anisha Mishra Waleed M. Alahdal Mina Sami

Document Type

Research Article

Publication Title

International Review of Economics and Finance

Publication Date

10-1-2025

doi

10.1016/j.iref.2025.104445

Abstract

Firms are pivotal in advancing the united nations sustainable development goals (SDGs), yet the mechanisms through which they contribute remain underexplored. While existing literature highlights the positive impact of environmental, social, and governance (ESG) performance on sustainability outcome; however, the role of corporate governance, particulalry audit committee expertise in strengthening this link is less understood. This study examines how ESG performance impacts SDGs at the firm level and whether ACE moderates this relationship, using panel data from 6073 firms across 34 OECD countries between 2017 and 2022. Employing fixed effects regression alongside robustness checks—including Driscoll-Kraay standard errors, heterogeneity analysis, channel analysis and two-stage least square— the results reveal that higher ESG performance significantly improves the SDGs outcomes. Moreover, the presence of ACE strengthens this relationship by enhancing transparency, reducing information asymmetry, and improving non-financial oversight. These findings highlight the importance of effective corporate governance in amplifying sustainability performance. The study offers practical implications for policymakers, corporate boards, and investors seeking to align governance structures with global sustainability goals.

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