Cloud-Driven ESG Transformation: Strategic Implications ForCorporate Sustainability And Financial Performance

Abstract

The integration of Environmental, Social, and Governance (ESG) principles into corporate strategies has emerged as a critical determinant of long-term sustainability, market performance, and stakeholder engagement. This paper examines the transformative potential of cloud computing as a strategic enabler for ESG implementation, contrasting it with traditional on-premises hosting infrastructures. Drawing on a multidisciplinary framework encompassing stakeholder theory, signal transmission theory, and sustainable finance perspectives, this study critically interrogates how cloud-driven infrastructures optimize operational efficiency, reduce environmental impact, and enhance transparency in ESG reporting. A comprehensive review of empirical studies, including both macroeconomic analyses of ESG performance across sectors and firm-level investigations, underlines the nuanced interactions between digital transformation and sustainability outcomes. The paper further explores sector-specific adaptations of cloud architectures, highlighting their role in facilitating data-driven ESG assessments, green energy optimization, and socially responsible investment alignment. Analytical insights emphasize the importance of integrating technological infrastructure decisions with strategic ESG objectives to maximize financial performance while adhering to global sustainability mandates. By synthesizing theoretical and empirical findings, this research elucidates a framework for corporations to leverage cloud capabilities in operationalizing ESG commitments effectively, providing guidance for policymakers, investors, and management practitioners seeking to navigate the evolving landscape of responsible corporate governance.