1Yosep Fristamara, 2Lucy Sri Musmini
1,2Universitas Pendidikan Ganesha, Indonesia
DOI : https://doi.org/10.47191/ijmra/v7-i12-23Google Scholar Download Pdf
ABSTRACT:
Environmental, Social, and Governance (ESG) has evolved from a scoring system into a strategic tool critical to global sustainability. This study examines the transformation of ESG by focusing on score evaluation, its impact on financial performance and environmental sustainability, implementation challenges, as well as the role of technology and holistic approaches. Findings reveal that strong ESG performance enhances financial stability, attracts investments, and bolsters corporate resilience against external risks. However, challenges such as greenwashing, pillar disparities, and reporting harmonization gaps remain significant barriers. By integrating advanced technologies like machine learning and blockchain and adopting holistic approaches that consider social, environmental, and financial values, ESG can serve as a key driver of global sustainability. This study provides valuable insights into the role of ESG as a strategic tool for fostering a greener, more inclusive, and sustainable economy.
KEYWORDS:ESG, sustainability, greenwashing, green technology, score evaluation
REFERENCES1) Atif, H., & Alam, Q. (2024). Exploring the Nexus between ESG Disclosure and Financial Risk, Exploring how Transparent Reporting Shapes Perceptions of Risk and Influences the Decision-Making Process for Investors.. Journal of Peace, Development & Communication, 8(3), 200-2013. https://doi.org/10.36968/jpdc-v08-i03-12.
2) Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108
3) Bezerra, R. R. R., Martins, V. W. B., & Macedo, A. N. (2024). Validation of Challenges for Implementing ESG in the Construction Industry Considering the Context of an Emerging Economy Country. Applied Sciences, 14(14), 6024. https://doi.org/10.3390/app14146024
4) Cruciani, C., & Santagiustina, C. R. M. A. (2023). The present and future of sustainability disclosure in equity investment funds’ pre-contractual documents: Mapping ESG discourse through STM. Finance Research Letters, 58, 104033. https://doi.org/10.1016/j.frl.2023.104033
5) Drempetic, S., Klein, C., & Zwergel, B. (2019). The Influence of Firm Size on the ESG Score: Corporate Sustainability Ratings Under Review. Journal of Business Ethics, 167, 333 - 360. https://doi.org/10.1007/s10551-019-04164-1.
6) Elkington, J. (1994). Cannibals with forks: The Triple Bottom Line of 21st century business. Capstone Publishing.
7) Ferjančič, U., Ichev, R., Lončarski, I., Montariol, S., Pelicon, A., Pollak, S., ... & Žnidarič, M. (2024). Textual analysis of corporate sustainability reporting and corporate ESG scores. International Review of Financial Analysis, 96, 103669. https://doi.org/10.1016/j.irfa.2024.103669
8) Ferri, S., Tron, A., Colantoni, F., & Savio, R. (2023). Sustainability Disclosure and IPO Performance: Exploring the Impact of ESG Reporting. Sustainability, 15(6). https://doi.org/10.3390/su15065144.
9) Fiorillo, P., & Santilli, G. (2024). The influence of shareholder ESG performance on corporate sustainability: Exploring the role of ownership structure. Finance Research Letters, 67, 105800. https://doi.org/10.1016/j.frl.2024.105800
10) Fiorillo, P., & Santilli, G. (2024). The influence of shareholder ESG performance on corporate sustainability. Finance Research Letters, 67, 105800. https://doi.org/10.1016/j.frl.2024.105800
11) Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman.
12) Fuente, G. D. L., & Velasco, P. (2024). Pretending to be sustainable: Is ESG disparity a symptom? Journal of Contemporary Accounting & Economics, 20, 100418. https://doi.org/10.1016/j.jcae.2024.100418
13) Gebhardt, M., Schneider, A., Seefloth, M., & Zülch, H. (2023). Institutional investors' information needs in the context of the sustainable finance disclosure regulation (EU/2019/2088): the implications for companies' sustainability reporting. Journal of Applied Accounting Research, 25(5), 913-942. https://doi.org/10.1108/jaar-11-2022-0303.
14) Gupta, H., & Chaudhary, R. (2023). An Analysis of Volatility and Risk-Adjusted Returns of ESG Indices in Developed and Emerging Economies. Risks, 11(10), 182. https://doi.org/10.3390/risks11100182
15) Jinga, P. (2022). The Increasing Importance of Environmental, Social and Governance (ESG) Investing in Combating Climate Change. IntechOpen. https://doi.org/10.5772/intechopen.98345.
16) Khaled, R., Ali, H., & Mohamed, E. (2021). The Sustainable Development Goals and corporate sustainability performance: Mapping, extent and determinants. Journal of Cleaner Production, 311, 127599. a. https://doi.org/10.1016/J.JCLEPRO.2021.127599.
17) Lin, Z. (2024). Does ESG performance indicate corporate economic sustainability? Borsa Istanbul Review, 24, 485–493. a. https://doi.org/10.1016/j.bir.2024.02.010
18) Liu, M., et al. (2024). Driving toward sustainable cities: The interplay between Chinese emerging corporate ESG performance and climate finance in achieving low-carbon development. Urban Climate, 55, 101918. a. https://doi.org/10.1016/j.uclim.2024.101918
19) Malecki, C. (2023). The EU proposal for a Regulation on the transparency and integrity of ESG rating activities on 13 June 2023: the missing piece of sustainable finance regulation. Law and Financial Markets Review, 17 (2), 156 - 170. a. https://doi.org/10.1080/17521440.2024.2347061.
20) Pulino, S., Ciaburri, M., Magnanelli, B., & Nasta, L. (2022). Does ESG Disclosure Influence Firm a. Performance?. Sustainability, 14(13). https://doi.org/10.3390/su14137595.
21) Radu, O., Dragomir, V., & Ionescu-Feleagă, L. (2023). The Link between Corporate ESG Performance and the UN Sustainable Development Goals. Proceedings of the International Conference on Business Excellence, 17, 776 - 790. a. https://doi.org/10.2478/picbe-2023-0072.
22) Sarkar, S., Nair, M., & Datta, A. (2023). Role of Environmental, Social, and Governance in achieving the UN Sustainable Development Goals: A special focus on India. Environmental Progress & Sustainable Energy, 42. a. https://doi.org/10.1002/ep.14204.
23) Singhania, M., & Saini, N. (2021). Institutional framework of ESG disclosures: comparative analysis of developed and developing countries. Journal of Sustainable Finance & Investment, 13(1), 516 - 559. a. https://doi.org/10.1080/20430795.2021.1964810.
24) Subramaniam, R. K., Samuel, S. D., Seera, M., & Alam, N. (2024). Utilizing machine learning for corporate social responsibility (CSR) and environmental, social, and governance (ESG) evaluation: Transitioning from committees to climate. Sustainable Futures, 8, 100329. https://doi.org/10.1016/j.sftr.2024.100329
25) Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571-610. https://doi.org/10.5465/amr.1995.9508080331
26) Talan, G., et al. (2024). From ESG to holistic value addition: Rethinking sustainable investment from the lens of stakeholder theory. International Review of Economics and Finance, 96, 103530. https://doi.org/10.1016/j.iref.2024.103530
27) Tillu, P. G., Digalwar, A. K., Singh, S. R., & Reosekar, R. S. (2024). Towards sustainable automobile ecosystem in India: Integrated analysis of technical, economic, and ESG dimensions. Cleaner Environmental Systems, 14, 100210. https://doi.org/10.1016/j.cesys.2024.100210
28) Ting, I. W. K., Azizan, N. A., Bhaskaran, R. K., & Sukumaran, S. K. (2020). Corporate Social Performance and Firm Performance: Comparative Study among Developed and Emerging Market Firms. Sustainability, 12(1), 26. a. https://doi.org/10.3390/su12010026.
29) Treepongkaruna, S., Yong, H., Thomsen, S., & Kyaw, K. (2024). Greenwashing, carbon emission, and ESG. Business Strategy and the Environment, 1–14. https://doi.org/10.1002/bse.3929.
30) Xue, R., Wang, H., Yang, Y., Linnenluecke, M. K., Jin, K., & Cai, C. W. (2023). The adverse impact of corporate ESG controversies on sustainable investment. Journal of Cleaner Production, 427, 139237. a. https://doi.org/10.1016/j.jclepro.2023.139237
Volume 07 Issue 12 December 2024
There is an Open Access article, distributed under the term of the Creative Commons Attribution – Non Commercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting and building upon the work for non-commercial use, provided the original work is properly cited.
Our Services and Policies
Authors should prepare their manuscripts according to the instructions given in the authors' guidelines. Manuscripts which do not conform to the format and style of the Journal may be returned to the authors for revision or rejected.
The Journal reserves the right to make any further formal changes and language corrections necessary in a manuscript accepted for publication so that it conforms to the formatting requirements of the Journal.
International Journal of Multidisciplinary Research and Analysis will publish 12 monthly online issues per year,IJMRA publishes articles as soon as the final copy-edited version is approved. IJMRA publishes articles and review papers of all subjects area.
Open access is a mechanism by which research outputs are distributed online, Hybrid open access journals, contain a mixture of open access articles and closed access articles.
International Journal of Multidisciplinary Research and Analysis initiate a call for research paper for Volume 07 Issue 12 (December 2024).
PUBLICATION DATES:
1) Last Date of Submission : 26 December 2024 .
2) Article published within a week.
3) Submit Article : editor@ijmra.in or Online
Why with us
1 : IJMRA only accepts original and high quality research and technical papers.
2 : Paper will publish immediately in current issue after registration.
3 : Authors can download their full papers at any time with digital certificate.
The Editors reserve the right to reject papers without sending them out for review.
Authors should prepare their manuscripts according to the instructions given in the authors' guidelines. Manuscripts which do not conform to the format and style of the Journal may be returned to the authors for revision or rejected. The Journal reserves the right to make any further formal changes and language corrections necessary in a manuscript accepted for publication so that it conforms to the formatting requirements of the Journal.