This review delves into the pressing concerns surrounding environmental performance, addressing the urgent need for action in light of environmental degradation and climate change threats. It surveys existing literature across geographical, industrial, and methodological dimensions, offering conceptual insights and empirical analyses. The study carefully examines factors influencing environmental performance, measurement scales, contextual elements, and intervening factors, exposing gaps and inconsistencies in current research. The analysis advocates for interdisciplinary, long‐term, innovative approaches to assess and enhance environmental performance holistically. It stresses the importance of inclusive strategies involving diverse stakeholders to foster sustainable environmental management. Ultimately, the review emphasizes collaborative efforts among policymakers, industries, communities, and individuals to tackle environmental challenges and promote ecological resilience. [ABSTRACT FROM AUTHOR]