This study emphasizes the vital importance of financial management in enhancing sustainable business practices. It explores the necessity of publishing sustainability reports. It examines the influence of corporate sustainability on financial decisions, particularly in capital budgeting, along with strategies for assessing and reducing sustainability-related risks. The research establishes a link between financial progression and sustainability, featuring a detailed comparison of Islamic and Western financial models to illustrate the real-world relevance of these principles. In addition, the study presents a detailed predictive model aimed at identifying and assessing financial instability in various organizations. This model benefits diverse stakeholders, as it factors in non-financial and macroeconomic variables. This research provides a comprehensive view of the interaction between financial management and sustainability, offering critical insights for companies seeking to adopt sustainable practices in their strategic planning and operations.