Sustainable Development Goals & Financial Performance of Firms: Evaluating Pre- and Post-SDG Era

Abstract

This study investigates the impact of Sustainable Development Goals (SDGs) on the financial performance of firms listed on the Pakistan Stock Exchange (PSX). It examines key performance indicators (KPIs) such as Return on Assets (ROA), Return on Equity (ROE), and Profit Margins, comparing financial outcomes before and after the adoption of SDGs (2013–2017 and 2018–2022). Using a quantitative, comparative research design, the study analyzes secondary data from annual reports, sustainability disclosures, and financial databases. The research highlights the challenges and opportunities of aligning corporate practices with SDGs in a developing economy, where resource constraints, governance challenges, and market volatility complicate implementation. Findings aim to provide valuable insights for policymakers, corporate managers, and academicians by exploring whether sustainability practices enhance long-term financial stability. This work contributes to the growing body of literature on SDG adoption in developing economies, addressing the gap in understanding how sustainable practices influence corporate profitability in the context of Pakistan.