Net Zero and Sustainability Performance: The Role of Collective Actions

The relationship between collective initiatives and sustainability performance is contested, since many studies suggest a positive outcome, but research also emphasizes the challenges and limits of such collective effort. In the scenario of Net Zero goals—described as a grand challenge for firms—this paper examines the firms' participation in collective actions aimed at Net Zero goals and the implications on their sustainability performance. Focusing on 1244 certified B Corps in Europe, we analyse involvement in three coalitions: Net Zero, Climate Ambition Alliance, and SME Climate Hub. Results show that participation in these initiatives is positively associated with higher sustainability performance, as measured by B Impact Assessment (BIA) scores, with stronger associations for larger firms. Importantly, the positive relationship between collective actions and sustainability performance is moderated by national culture: the positive association is stronger for firms located in more collectivist countries, highlighting the role of cultural context in shaping sustainability‐oriented collective engagement. These findings remain robust when focusing specifically on the environmental dimension of sustainability performance. Our study suggests that collective action may represent a relevant strategic mechanism associated with firms' pursuit of corporate sustainability and Net Zero goals.