CORPORATE SUSTAINABILITY COMMITTEE AND CORPORATE FINANCIAL PERFORMANCE

This study investigates the impact of corporate sustainability committees (CSCs) on corporate financial performance (CFP) among listed manufacturing firms in Nigeria from 2018 to 2023. The research examines four major characteristics of sustainability committees: size, independence, gender diversity, and due diligence, and their influence on financial performance measured by Return on Assets (ROA). Anchored on Stakeholder Theory, the study adopts a longitudinal research design using secondary data derived from annual reports, sustainability disclosures, and financial statements of 30 purposively selected firms. Descriptive statistics, correlation analysis, diagnostic tests, and Fully Modified Least Squares (FMOLS) regression were employed to analyse the data and establish relationships among variables. The empirical findings reveal that committee independence has a significant positive effect on corporate financial performance, implying that independent directors enhance governance quality and decision-making transparency. In contrast, due diligence practices exhibit a significant negative relationship with financial performance, suggesting that increased compliance efforts may impose short-term financial costs. Committee size and gender diversity, however, show no statistically significant influence on financial performance, indicating that structural and demographic attributes alone may not determine financial outcomes. The study concludes that sustainability committee independence is a crucial determinant of financial success, as it strengthens accountability and stakeholder confidence. The study recommends that firms prioritize appointing independent directors to sustainability committees, implement cost-effective compliance strategies, and view gender diversity as part of broader corporate social responsibility initiatives to promote both sustainable and profitable corporate governance.