Global Drivers for ESG Performance: The Body of Knowledge

Abstract

Progress on Environmental, Social and Governance (ESG) issues is vastly different depending where in the world you look. However, the literature on what drives ESG performance is highly fragmented and current theories fail to offer useful insights into the disparity in ESG performance. Hence, this study draws upon an accumulated body of knowledge of ESG-related literature and explores the major drivers of ESG performance. By applying a scientific and replicable methodology of systematic literature review, this article reveals the fundamental debate underpinning ESG responsibility, the breath of pertinent stakeholders, the theories necessary to understand ESG management and the conditions which will best achieve ESG progress. The major themes help inform the most effective choice of mechanisms to improve ESG outcomes. However, there are also significant themes not yet fully developed in the literature. Future research is urgently needed on the impact of economic development, regulatory environment and responsible investing on ESG outcomes. These research trajectories hold important implications for investment management, corporate strategy and government policies affecting global ESG performance.

Sustainability in the pharmaceutical industry—An assessment of sustainability maturity and effects of sustainability measure implementation on supply chain security

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“…First, we found that publicly traded companies reach higher target-setting maturity than family-owned or otherwise privately-owned companies and that larger companies reach higher maturity than smaller ones. These findings are supported by previous research that suggests that reporting requirements can impact the ESG focus of companies (Leong & Hazelton, 2019) (Daugaard & Ding, 2022).…”

“…This research builds on these findings by uncovering potential connections between ownership structures and ESG target-setting maturity. Similarly, previous research already highlighted performance differences between the three ESG dimensions (Daugaard & Ding, 2022). Building on this, this research sheds light on target-setting maturity differences across dimensions for MAHs in Germany.…”

Environmental governance investment and Air Quality: Based on China’s provincial panel data

“…This paper suggests that governments with poor financial capacity, they can still mobilize social forces to participate in environmental governance. For example, governments can propagate and promote the application of ESG (Environmental, Social and Governance) which is an investment concept and evaluation standard that focuses on enterprise environment, society and governance performance rather than financial performance (Daugaard and Ding, 2022). ESG will encourage companies to increase investment on air protection and alleviate the increasing pressure of government environmental investment.…”

A New Approach to Sustainable Financial Stability and its Prospects

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