IMPACT OF SUSTAINABILITY INITIATIVES ON CORPORATE FINANCIAL PERFORMANCE

Abstract

This article aims to analyze how sustainability practices affect the financial performance of companies, with an emphasis on the main indicators influenced by such strategies, such as return on assets, cost of capital, market valuation, and access to sustainable financing. The topic was developed through a qualitative bibliographic review, gathering studies published between 2024 and 2024 from national and international academic databases. The criteria used for material selection included thematic relevance, publication timeliness, and practical applicability of the findings to corporate management. The organized data indicate that well-structured sustainable actions contribute to the reduction of operational costs, increased attractiveness to investors, institutional image enhancement, and improved competitive positioning in the market. It is also observed that by integrating environmental, social, and governance (ESG) principles into financial management, organizations are able to align socio-environmental responsibility with economic value generation, promoting a more resilient performance adapted to 21st-century demands. It is concluded that sustainability is no longer a strategic differentiator but a concrete requirement in increasingly regulated and demanding markets, oriented towards long-term corporate responsibility.