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.