ADOPTION OF SUSTAINABLE BENCHMARKING AS AN APPROACH TO ENHANCING GREEN STRATEGIES: AN APPLIED STUDY ON A SAMPLE OF INDUSTRIAL COMPANIES

Abstract

The current paper presents an analysis of how the process of Sustainable Benchmarking (SB) helps to enhance the green strategic orientation of economic entities based on an integrated dual-model framework. According to the first model, SB is perceived as the explanatory variable and analysed through sixteen indicators, such as financial performance, non-financial measures and sustainability criteria. The second model includes green strategies (SG) as the dependent variable and identifies four fundamental dimensions of SG, namely environmentally responsible manufacturing, sustainable product development, green sourcing activities and organisational green culture. The empirical analysis of the research question was undertaken through a purposive sample of major economic actors from the Middle East, namely Almarai (Saudi Arabia), Baghdad Soft Drinks (Iraq), and Al-Hilal Industrial (Iraq) for the period from 2020 to 2024. The results obtained during the study indicate that SB not only continues to function as a tool for increasing operational effectiveness but has turned into a strategic management technique which ensures the connection of environmental goals and achievements related to the sustainability. Thus, it becomes clear that SB helps organisations to decrease the "performance gap" between green strategies and achieved environmental success. In the current sample of economic entities, Almarai became the most advanced benchmark in relation to the efficiency of energy management and sustainability disclosure. At the same time, other firms from Iraq showed less progress in comparison with the leader, as the process of environmental reporting continued to develop. Overall, the current study proves the idea that the application of SB allows organisations to transform environmental pressures and requirements into sustainable competitive advantages and the redesign of green business models. Economic organisations should therefore shift from the environmental management approach focused on compliance to the strategic approach, based on SB.