Carbon credits and financial performance through the lens of corporate governance and sustainability strategies: leveraging carbon finance instruments to advance SDGs

The increasing urgency of climate change has prompted companies world- wide to adopt various sustainability strategies, including carbon credits, to reduce their environmental impact. The literature on carbon finance emphasises the role of sustainability initiatives in improving corporate financial perfor- mance while contributing to global climate goals. Previous studies (Tang & Zhang, 2020; Ganda, 2022) highlight that carbon credits are a strategic tool for reducing emissions in line with international agreements, such as the Paris Agreement. Moreover, financial incentives linked to carbon credit adoption align with the United Nations Sustainable Development Goals (SDGs), par- ticularly Goal 13 (Climate Action), which urges urgent measures to combat climate change and its impacts, and Goal 12 (Responsible Consumption and Production), which promotes sustainable business practices. Companies that integrate carbon credits benefit financially and support SDG targets by enhanc- ing their environmental goals and operational efficiency (Toukabri & Youssef, 2023).