Corporate Governance, Sustainability Performance, and Green‐Building Policy Adoption: Evidence From US and European Listed Firms

This study examines associations between corporate governance (CG), accounting performance (AP), social performance (SP), and reported green‐building policy adoption (GB). Drawing on legitimacy and slack‐resources perspectives, we analyze 6965 firm‐year observations from Euro Stoxx 300 and S&P 500 firms during 2012–2023. The primary specification uses the Refinitiv Social Pillar Score as mediator, avoiding the GB item embedded in the Environmental Pillar. Separately estimated market PLS models describe direct and indirect associations, complemented by firm fixed‐effects, lagged, first‐difference, and binary‐outcome models. SP–GB remains positive across these longitudinal and logistic specifications, including additional adjustment for reported carbon emissions. Accounting performance pathways receive no consistent longitudinal support. The findings connect social sustainability with reported building‐related commitments and inform the assessment of policy disclosure alongside board governance and financial outcomes.