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Business cannot escape the impact of climate change that is deteriorating day by day. Many organizations are becoming motivated more than ever to introduce new business models, modern technologies, and supportive policies with an effort to cope with critical issues connected to climate change. The present study has investigated the mediating effect of psychological safety on the relationship between sustainable leadership and sustainable performance as well as evaluating the moderation impact of psychological empowerment on that relationship. To date, the present research is the first attempt wherein the incorporation of psychological empowerment and psychological safety has redefined the association between sustainable leadership and sustainable performance. Using cluster sampling approach, the data for this research was collected from 405 SMEs from Kuala Lumpur (Malaysia), Jakarta (Indonesia …