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This paper investigates the moderating role of sustainability committees in the relationship between environmental, social and governance (ESG) performance and environmental innovation within European nonfinancial firms.

The study analyzes data from 691 nonfinancial sector firms operating within EU states from 2013 to 2022. It employs regression analysis to examine the correlation between ESG performance and environmental innovation, considering the moderating effect of sustainability committees.

The research reveals a significant and positive correlation between ESG performance and environmental innovation. Moreover, it demonstrates that sustainability committees play a positive moderating role in this relationship, indicating their importance in fostering environmental innovation within organizations.

The study is limited to European nonfinancial companies, potentially limiting the generalizability of findings. Additionally, the research focuses on the moderating role of sustainability committees, leaving room for further exploration of other governance mechanisms.

The findings suggest that implementing an ESG performance framework and establishing dedicated sustainability oversight mechanisms, such as sustainability committees, can enhance environmental innovation within organizations. This insight is valuable for strategic decision-making aimed at advancing both sustainability and innovation agendas.

This study addresses a gap in the literature by exploring the moderating effect of sustainability committees on the link between ESG performance and environmental innovation from various theoretical viewpoints. It contributes to the understanding of mechanisms that enhance environmental innovation within companies and provides practical implications for corporate reporting accuracy and sustainability initiatives.

This study aimed to investigate the effect of sustainability disclosure (SD) as a mediator for the relationship between corporate governance (CG) and the performance of firms listed on the Amman Stock Exchange (ASE).

The study analysed 405 reports of firms listed on the ASE from 2014 to 2018. The direct and indirect impact of governance mechanisms on the firms' performance was examined using STATA 15. A four-step procedure for testing mediation was used to determine the mediating role of SD.

The results demonstrated that the board and audit committees' effectiveness positively and significantly influences the firm's performance. Additionally, the results demonstrated that SD partially mediates the relationship between CG and the firm's performance.

Research implications – This study supported the assumptions of agency, resource dependence and stakeholder theories as the basis to explain the relationship among board’s effectiveness, audit committee’s effectiveness, sustainability report and firm performance in developing economies. In addition, the results suggested that CG helps to enhance the firm's performance and sustainability reporting. Firms providing sustainable report are deemed more responsible and attract more returns to firms. Research limitations – The study only focused on reports from five years for non-financial firms listed on the ASE to test the assumed relationship between the variables.

This study contributed to the body of knowledge by examining the mediating role of SD between CG and firm performance. Investors, managers and regulators can obtain further insights, especially those seeking to improve a firm's performance in the emerging markets, through a sound CG system and extensive sustainability reporting.

This study focused on the direct and indirect impacts of CG and firm performance in an emerging and developing economy. The study used SD as the mediating variable in examining the indirect effect.