Building on resource-based theory, we seek to explore the underlying impact of green transformation and natural resources on sustainable development. To fully capture and understand the relationship between these important constructs, we apply an advanced analysis of composite structural equation modelling (ADANCO-SEM) in the study. The findings show that green finance, together with green innovation, significantly and positively influences natural resources and biodiversity, explaining 90.12% of their variance ( R ² = 0.9012). Furthermore, natural resources and biodiversity significantly contribute to sustainable development, explaining 66.75% of the variance in the relevant sustainable development dimensions ( R ² = 0.6675). These findings highlight the important role of green finance and green innovation in promoting environmental sustainability and broader sustainable development. The empirical findings can help firms use organisational resources more efficiently. The practical contribution and managerial implications describe how the research findings can be applied in real-world situations and how they help managers make better decisions.
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Mishra et al. (2026) studied this question.
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