Environmental-, social-, and governance-related factors for business investment and sustainability: a scientometric review of global trends

Abstract

Consideration of environmental, social, and governance (ESG) factors can contribute to the environmental and economic performance of organizations in terms of investment and sustainability. This article thoroughly reviews the following factors influencing decisions regarding ESG policy by businesses: economic performance, environmental sustainability, pollution and waste, corporate social responsibility, gender, and governance structure. Moreover, we review the impact of these factors considering ESG disclosure, the global pandemic, religion, governing board and size, national interest, and technological advancements. The literature reports that ESG disclosures of environmental, economic, and social sustainability performance can strengthen business sustainability and performance. Religion-based businesses demonstrated better socio-environmental performance but not governance. An independent governing board has a positive impact; however, dual-gender boards negatively impact ESG disclosure. Significant diversification potential in ESG investments was observed during the COVID-19 pandemic. Adopting an ESG policy enhances the innovation capacity, innovative activities, value creation, and financial performance of businesses. Overall, the social and environmental performance demonstrated a significantly positive relationship with business sustainability, indicating that business economy and creating value for society are mutually dependent. The literature summary presented in this review will help future research on ESG factors that influence business investments and sustainability.

Accelerating Indonesia Sustainable Infrastructure Development through ESG Initiatives in PPP Ecosystem

“…By implementing ESG, the project owner have an opportunity to access the global investment as it reflects the commitment to implementing ethical and sustainable business practices and paying attention to environmental, social, and governance factors relevant to the demands and concerns of global stakeholders today [19] [18]. Furthermore, ESG disclosure on the environment, economic performance, and social sustainability, in the business sector can enhance the sustainability and performance of businesses [20].…”

Sustainable strategies and firm performance in manufacturing industry of Coahuila, Mexico

“…For the authors Ahmad et al. (2023) sustainability generates benefits for both the firm and society by enabling the adoption of a policy of environmental, social and governance stakeholders to improve the innovation capacity, value creation and financial performance.…”

“…For the authors Ahmad et al (2023) sustainability generates benefits for both the firm and society by enabling the adoption of a policy of environmental, social and governance stakeholders to improve the innovation capacity, value creation and financial performance. Performance measurement seems indispensable to encourage the implementation of improvement actions, compare results and communicate them effectively to stakeholders (Cagno et al, 2023).…”

Balancing acts: The relationship between corporate environmental irresponsibility, charitable donations, and financial performance

“…While, in many economically underdeveloped regions (e.g., Africa), environmentally non-compliant firms engage in CD merely to conceal their environmentally unfriendly behavior and mitigate the negative consequences of CEIR (Yusuf & Omoteso, 2016). Therefore, research conducted in these regions primarily focuses on the development of corporate social responsibility systems related to the environment, charity, and other areas (Ahmad et al, 2023).…”

“…At a global level, few scholars have focused on the relationship between CEIR, CD, and financial performance (Dempsey‐Brench & Shantz, 2022). As environmental and tax regulations in developed countries (e.g., EU and US) are relatively robust, research conducted in these regions primarily focuses on how firms can enhance their performance and value by fulfilling environmental responsibilities and engaging in CD (Ahmad et al, 2023; Cavotta et al, 2021; Cha & Rajadhyaksha, 2021). While, in many economically underdeveloped regions (e.g., Africa), environmentally non‐compliant firms engage in CD merely to conceal their environmentally unfriendly behavior and mitigate the negative consequences of CEIR (Yusuf & Omoteso, 2016).…”