Sustainability performance (SP) has become a strategic priority for organisations, yet the role of leadership in driving this agenda remains underexplored. This study addresses this gap by examining how transformational leadership (TL) influences SP through a systematic literature review (SLR) of 104 peer-reviewed articles, guided by the PRISMA framework. Data was sourced from Scopus and Web of Science to analyse publication trends, TL’s role in SP adoption, sectoral and regional variations, key leadership competencies, and theoretical foundations. Findings indicate that TL positively impacts SP in 90% of the reviewed studies, enhancing corporate social responsibility (CSR), environmental, social and governance (ESG) outcomes, and fostering innovation-led sustainable practices. Specifically, three primary pathways emerge: environmental performance (green innovation, eco-efficiency, pro-environmental behaviours), social performance (knowledge sharing, employee engagement, organisational citizenship), and economic/governance performance (circular economy practices, stakeholder alignment, financial sustainability). These effects are mediated by mechanisms such as green human resource management, knowledge management capabilities, and intrinsic motivation, and moderated by factors including organisational climate and board gender diversity. Stronger TL–SP relationships are observed in innovation-intensive sectors and regions with stringent regulations. Furthermore, five clusters of TL competencies—visionary, ethical, knowledge-based, green/digital, and communication skills—are critical for overcoming barriers such as resource constraints and institutional resistance. Finally, the study extends leadership and sustainability theories by clarifying leadership-driven mechanisms and offers actionable insights for organisations, HR practitioners, and policymakers seeking to strengthen leadership capacity for sustainable development.
Gaybullaev et al. (Tue,) studied this question.