ESG as a Catalyst for Business Sustainability: Theoretical Insights and Practical Applications

Dear Colleagues,

Under the concurrent challenges posed by the global energy crisis and climate change, enterprises, functioning as the principal actors in economic activities, wield substantial influence over both the environment and society [1]. Consequently, it is indisputable that enterprises play a pivotal role in combatting climate change and fostering environmental sustainability [2,3]. Currently, the function of enterprises’ sustainable development has evolved beyond its traditional focus on economic interests and internal operations, adopting an overarching ecological perspective. In other words, enterprises no longer view themselves as isolated economic entities solely driven by profit and growth, but as integral constituents of a larger ecosystem. This shift reflects a deeper understanding of the interdependent relationship between their business activities and the broader ecological environment.

In this context, sustainable management, a business philosophy emphasizing corporate social responsibility, has gained widespread traction among managers, practitioners, and customers. Among the various approaches to business sustainability management, the environmental, social, and governance (ESG) sustainable development model stands out for its comprehensive evaluation of enterprise performance across three crucial dimensions: the environment, society, and corporate governance [7,8]. Hence, conducting in-depth research on ESG performance undeniably holds profound theoretical and practical implications for advancing the sustainable management of enterprises.

A scientifically sound, rationally designed, and effectively implemented ESG strategy can not only offer clear guidelines for enterprises to address global challenges, such as the energy crisis and climate change, but also enable them to distinguish themselves in the market, facilitating a win–win scenario that balances economic and sustainable development. Within the ESG framework, sustainable business is gradually emerging as a novel paradigm of business activity. The business sustainability model offers numerous advantages: it enhances organizations' risk management capabilities and unlocks opportunities for diversification and value generation across various sectors [12,13]. Many industries and companies have successfully employed sustainability models to achieve economic, environmental, and social goals concurrently.

Business sustainability models possess considerable potential for integrating sustainability concepts and goals into firms' value propositions, value creation, and value capture processes. They endeavor to advance sustainable development goals by fostering proactive multi-stakeholder management, driving innovation, and adopting long-term visions. Notably, the business sustainability model provides organizations with efficient solutions to fulfill the dual goals of economic and sustainable development in tandem, thereby significantly mitigating the adverse environmental and societal impacts of their operations.

ESG practices, however, face notable challenges in areas such as technical innovation and capital investment. These challenges include difficulties in the research and development of environmental protection solutions, along with limited market demand for sustainable products and services, among other issues. As a result, firms often need to balance the inputs and outputs associated with ESG initiatives [17,18]. Additionally, various stakeholders exert complex and sometimes conflicting influences on the establishment of business sustainability models within firms. Meeting the diverse demands of these stakeholders presents significant challenges for enterprises in balancing the interests and requirements of all parties during the decision-making process [19–21].

Therefore, extensive research and exploration is still required to address the development and implementation of enterprise ESG initiatives and to refine business sustainability models. This Special Issue seeks to advance understanding in this domain by presenting original research, theoretical analyses, case studies, and comprehensive literature reviews. By doing so, it aims to offer valuable insights into the theory and practice of fostering corporate business sustainability and ESG adoption on a global scale.

Topics of Interest

In this Special Issue, we welcome original research articles and review papers. Potential research areas may include, but are not limited to, the following:

• How can the ESG model be effectively integrated with business sustainability?
• What are the best practices for ESG measurement, reporting, and accountability in sustainable businesses?
• What strategies can businesses adopt to address climate risks and energy crises through sustainability?
• How do corporate executives' characteristics influence ESG performance?
• What role does sustainable marketing play in consumer support for business sustainability?
• How does ESG performance affect firm behavior and decision-making?
• What practices in the value chain, supply chain, and industrial chain contribute to business sustainability?
• What are the implications of industry, country, or region-specific ESG studies?
• How can digital intelligence empower ESG initiatives and promote sustainable development?
• In what ways does ESG contribute to corporate risk identification and management?
• How does green and sustainable finance support the achievement of sustainable development goals?
• What impact do ESG initiatives have on corporate reputation and brand equity?
• How do ESG frameworks vary across different industries, and what can be learned from these comparisons?
• What technological innovations enhance ESG practices and reporting?
• How do consumers perceive brands with strong ESG commitments?
• How do ESG factors influence investment decisions and portfolio management?
• What are some case studies of successful business transformations driven by ESG-driven innovation?
• How do corporate governance structures affect ESG performance?
• What role does corporate social responsibility (CSR) play in shaping ESG strategies?
• How effective are ESG ratings, and what are their implications for investors?
• What cross-cultural factors influence the adoption and implementation of ESG practices?
• How does ESG performance interact with employee engagement within organizations?
• What are the best practices and challenges of implementing ESG in supply chain management?
• How do policy frameworks impact the adoption of ESG practices in different regions?
• What has been the evolution of ESG standards and regulations globally?
• How can education and training promote ESG awareness among business leaders?

References:

1. Wang, J., Zhuang, J., Yan, C., & Chan, K. C. Standing Up or Standing By: Abnormally Hot Temperatures and Corporate Environmental Engagement. Bus. Ethics. 2024, 1–35.
2. Lu, H., Xu, W., Cai, S., Yang, F., & Chen, Q. Does top management team responsible leadership help employees go green? The role of green human resource management and environmental felt‐ Corp Soc Resp Env Ma. 2022, 29(4), 843–859.
3. Ren, S., Zhou, Q., Zhang, X., & Zeng, H. How do heavily polluting firms cope with dual environmental regulation? A study from the perspective of financial asset allocation. Energy Econ. 2024, 139, 107915.
4. Yang, N., Zang, X., & Chen, C. Inheritance patterns under cultural ecology theory for the sustainable development of traditional handicrafts. 2022, 14(22), 14719.
5. Brychko, M., Bilan, Y., Lyeonov, S., & Streimikiene, D. Do changes in the business environment and sustainable development really matter for enhancing enterprise development? Sustain Dev. 2023, 31(2), 587–599.
6. Painter, M., Hibbert, S., & Cooper, T. The development of responsible and sustainable business practice: Value, mind-sets, business-models. Bus. Ethics. 2019, 157, 885–891.
7. Yu, K., Wu, Q., Chen, X., Wang, W., & Mardani, A. An integrated MCDM framework for evaluating the environmental, social, and governance (ESG) sustainable business performance. Oper. Res. 2023, 1–32.
8. Ma, Y. M., Deng, Z., Teng, Y., Yang, Z., & Zheng, V. Firms’ Multi-sided Platform Construction Efforts and ESG Performance: An Information Processing Theory Perspective. Mark. Manag. 2023, 115, 455–469.
9. Ma, Y., Teng, Y., Deng, Z., & Yang, Z. Does Firm Carbon Disclosure Increase Consumers’ Recycling Willingness and Firms’ Recycling Performance? Strat. Env. 2023, 32(4), 2451–2470.
10. Annesi, N., Battaglia, M., Ceglia, I., & Mercuri, F. Navigating paradoxes: building a sustainable strategy for an integrated ESG corporate governance. Decis 2024.
11. Lüdeke-Freund, F., & Dembek, K. Sustainable business model research and practice: Emerging field or passing fancy? Clean. Prod. 2017, 168, 1668–1678.
12. Porter, M.E., Kramer, M.R. Creating shared value. Bus. Rev. 2011, 89, 62–77.
13. Geissdoerfer, M., Vladimirova, D., & Evans, S. Sustainable business model innovation: A review. Clean. Prod. 2018, 198, 401–416.
14. Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M., Silva, E. A., & Barlow, C. Y. Business model innovation for sustainability: Towards a unified perspective for creation of sustainable business models. Strategy Environ. 2017, 26(5), 597–608.
15. Boons, F.; Lüdeke-Freund, F. Business models for sustainable innovation: State-of-the-art and steps towards a research agenda. Clean. Prod. 2013, 45, 9–19.
16. Charles, O.H., Jr.; Schmidheiny, S.; Watts, P. Walking the Talk: The Business Case for Sustainable Development; Routledge: Abingdon, UK, 2017.
17. Zhai, Y., Cai, Z., Lin, H., Yuan, M., Mao, Y., & Yu, M. Does better environmental, social, and governance induce better corporate green innovation: The mediating role of financing constraints. Corp Soc Resp Env Ma. 2022, 29(5), 1513–1526.
18. Taddeo, S., Agnese, P., & Busato, F. Rethinking the effect of ESG practices on profitability through cross-dimensional substitutability. Environ. Manage. 2024, 352, 120115.
19. Ge, G., Xiao, X., Li, Z., & Dai, Q. Does ESG performance promote high-quality development of enterprises in China? The mediating role of innovation input. Sustainability 2022, 14(7), 3843.
20. Lu, H., Yang, F., Xu, S., Liu, X., & Yang, Z. Is corporate greening beneficial? Exploring the relationship between perceived corporate environmental behavior and organizational citizenship behavior. Strategy Environ. 2023, 32(4), 2360–2372.
21. Qi, B., & Yang, Z. Board Group Faultlines, Slack Resource, and Corporate Carbon Performance. Sustainability 2022, 14(20), 13053.

Prof. Dr. Zhilin Yang
Prof. Dr. Hui Lu
Prof. Dr. Gang Li
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

• sustainable development
• ESG (environment, social and governance)
• business sustainability
• corporate social responsibility
• environmental management
• climate change
• digitalization
• innovation and sustainability
• green finance