Introduce

The discussion around Environmental, Social and Governance (ESG) criteria and corporate sustainability has gained significant momentum in recent years, largely driven by societal expectations. is evolving in relation to new production and consumption models (Nishitani et al., 2021). Until the mid-1990s, according to Clarkson (1995), the focus of corporate success was primarily on meeting the needs of a single stakeholder, namely shareholders. However, as time has passed and the overall picture has changed, especially influenced by public policy changes, this perspective has undergone transformations. Gradually, other stakeholders have put pressure on companies, leading to the integration of corporate sustainability into the strategic management of organizations, leading them to practice ESG criteria (Wang et al. ., 2018).

Corporate sustainability performance refers to a company's ability to operate in a way that maintains ecological integrity, social welfare, and sound governance principles, while also creating value for shareholders. (Ahmad et al., 2023; Luque-Khilchez et al., 2023). It includes the effective management of environmental resources, the promotion of positive social relationships, and the maintenance of high standards of ethical behavior (Bellandi, 2023). Assessing corporate sustainability performance requires evaluating both qualitative and quantitative indicators, examining various aspects such as environmental management, social responsibility and corporate governance (Sandberg et al. al., 2022).

ESG criteria are used to evaluate corporate sustainability and the ethical performance of companies and investments (Arora and Sharma, 2022). They are applied by corporations to monitor and control the impact of business activities on the internal and external environment (Viranda et al., 2020). They mainly include: (i) information collection; (ii) develop solutions; (iii) handle ESG issues in compliance with standards; (iv) conduct training; and (v) provide good communication (Boiral, 2002; Montabon et al., 2007; Merli and Preziosi, 2018). ESG criteria include prevention and conservation performance indicators (Gond et al., 2012). Besides, it requires coordination between the environmental department and other departments within companies, and a balance between sustainable development goals and other corporate goals.

ESG criteria incorporate environmental, social and governance factors into investment and business decision-making, and involve conditions related to traditional financial metrics in their analysis investments or company valuation (Madden, 2022). These conditions may include metrics such as carbon emissions, water use, employee diversity, labor practices, board diversity, executive compensation, etc. Therefore, ESG criteria provide quantitative and qualitative information about a company's sustainability activities and their potential impact on different stakeholders (Khalil et al., 2022; Uyar and al., 2023).

ESG integration involves incorporating environmental, social and governance metrics into investment and business decision-making processes. Rather than treating ESG criteria separately from financial analysis, integration recognizes their materiality and combines them alongside traditional financial analysis. This integration can occur at different stages of the investment process, including portfolio construction, risk assessment, due diligence and ongoing monitoring. Integration aims to identify and manage risks and opportunities related to ESG criteria, ultimately seeking to enhance long-term investment performance and sustainability (Gebhardt et al., 2022; Harasheh and Provasi, 2023).

ESG criteria provide data and metrics to evaluate a company's sustainability and ethical performance, while integration involves incorporating these criteria into investment and decision-making processes. business to better understand and manage the potential impacts on corporate financial performance and sustainability (Alda, 2021; Sahoo and Kumar, 2022).

In this sense, the integration of ESG criteria has become a tool responsible for defining, planning, operating and implementing the actions of corporations aimed at prevention and protection of the environment, outside aspects of social responsibility and the quality of their operations (Barbosa et al., 2021).

Both from the perspective of the Sustainable Development Goals and corporate responses to changing consumer preferences, attention to corporate sustainability is becoming increasingly important (Boulhaga et al. ., 2022). When looking for a relationship between the implementation of ESG criteria and corporate sustainability, the literature presents a heterogeneous scenario. Some researchers support a positive relationship (Harymawan et al., 2022; Kim et al., 2022), and others have confirmed a negative relationship (Rajesh and Rajendran, 2020).

As in the case study of Lee and Isa (2022),