Sustainability

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24 pages, 397 KiB

Open AccessArticle

Strategic Management of Environmental, Social, and Governance Scores and Corporate Governance Index: A Panel Data Analysis of Firm Value on the Istanbul Stock Exchange

by Mustafa Yucel, Guler Yanik, Faruk Dayi and Ayhan Benek

Sustainability 2025, 17(11), 4971; https://doi.org/10.3390/su17114971 - 28 May 2025

Abstract

This study investigates how Environmental, Social, and Governance (ESG) scores and the Corporate Governance Index (CGI) jointly influence firm value in Türkiye. To address the contextual limitations of global ESG metrics, this study incorporates the CGI, a country-specific governance measure developed by Capital [...] Read more.

This study investigates how Environmental, Social, and Governance (ESG) scores and the Corporate Governance Index (CGI) jointly influence firm value in Türkiye. To address the contextual limitations of global ESG metrics, this study incorporates the CGI, a country-specific governance measure developed by Capital Markets Board of Türkiye, as a complementary indicator. Using panel data from 44 non-financial firms listed on the Istanbul Stock Exchange between 2019 and 2023, the study applies a random effects regression model with robust standard errors. The findings indicate that both ESG and CGI scores are positively and significantly associated with firm value, along with profitability (ROA), while financial leverage and liquidity (CR) show negative effects. The results underscore the strategic value of aligning sustainability performance with governance quality, particularly in emerging market contexts. This study contributes to the literature by providing empirical evidence for an integrated ESG–CGI framework and offers practical insights for corporate managers, investors, and policymakers. Full article

(This article belongs to the Special Issue Sustainable Governance: ESG Practices in the Modern Corporation)

29 pages, 591 KiB

Open AccessArticle

The Effect of Corporate Governance on the Quality of Integrated Reporting and ESG Risk Ratings

by Murat Colak and Mert Sarioglu

Sustainability 2025, 17(11), 4868; https://doi.org/10.3390/su17114868 - 26 May 2025

Viewed by 133

Abstract

Integrated Reporting (IR) has gained prominence as a comprehensive approach to corporate disclosure, yet theoretical clarity is still developing regarding how governance mechanisms shape IR quality and its relation to ESG risk ratings. Addressing this gap, this study explores the influence of board [...] Read more.

Integrated Reporting (IR) has gained prominence as a comprehensive approach to corporate disclosure, yet theoretical clarity is still developing regarding how governance mechanisms shape IR quality and its relation to ESG risk ratings. Addressing this gap, this study explores the influence of board and audit committee characteristics on IR quality and whether an improved IR quality is associated with a lower ESG risk. Drawing on different theories, this research examines how governance structures enhance transparency and accountability in line with societal expectations. Based on panel data from 158 firms across four years (2019–2022), a random effects Panel EGLS regression model is employed along with an endogeneity check. Findings show that board independence and the presence of women members significantly enhance the IR quality, while board size is not a determining factor. Similarly, audit committee independence and meeting frequency positively influence the IR quality, whereas committee size does not. Furthermore, firms with a higher IR quality demonstrate significantly lower ESG risk scores. These results underscore the theoretical proposition that effective governance improves disclosure credibility and reduces information asymmetry. This study suggests that reinforcing board independence and diversity can enhance reporting quality and stakeholder trust, offering a strategic path toward more sustainable and transparent corporate behavior. Full article

(This article belongs to the Special Issue Sustainable Governance: ESG Practices in the Modern Corporation)

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16 pages, 3979 KiB

Open AccessArticle

ESG Integration and Green Computing: A 20-Year Bibliometric Analysis

by Erasmia Angelaki, Alexandros Garefalakis, Markos Kourgiantakis, Ioannis Sitzimis and Ioannis Passas

Sustainability 2025, 17(7), 3266; https://doi.org/10.3390/su17073266 - 7 Apr 2025

Viewed by 692

Abstract

As businesses increasingly prioritize sustainability, integrating Environmental, Social, and Governance (ESG) principles with green computing has emerged as a critical strategy. However, research remains fragmented regarding how these two domains interact within the Triple Bottom Line (TBL) framework. This study conducts a bibliometric [...] Read more.

As businesses increasingly prioritize sustainability, integrating Environmental, Social, and Governance (ESG) principles with green computing has emerged as a critical strategy. However, research remains fragmented regarding how these two domains interact within the Triple Bottom Line (TBL) framework. This study conducts a bibliometric analysis of 750 articles published between 2004 and 2024, using multiple correspondence and co-citation analyses to identify key trends. The findings highlight a strong correlation between green computing practices and improved economic outcomes. The results indicate that China and the United States lead research output in this field, with a significant rise in publications post-2018, driven by regulatory pressures and corporate sustainable initiatives. Our findings emphasize that companies integrating green computing with ESG strategies can achieve long-term financial sustainability while meeting environmental and social responsibilities. This study provides insights from business leaders, policymakers, and researchers by identifying critical gaps and future research directions, including industry-specific applications and policy frameworks to accelerate ESG adoption in technology-driven enterprises. Future research should address practical challenges in implementing these practices across different industries and explore the long-term impacts of ESG integration on business performance. Full article

(This article belongs to the Special Issue Sustainable Governance: ESG Practices in the Modern Corporation)

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23 pages, 295 KiB

Open AccessArticle

The Impact of Environmental Social and Governance Performance on Systematic Tail Risk of Chinese Corporations

by Mingyue Fu and Yanyan Jia

Sustainability 2025, 17(5), 1854; https://doi.org/10.3390/su17051854 - 21 Feb 2025

Cited by 1 | Viewed by 620

Abstract

Based on the perspective of systematic tail risk, this study aims to explore the impact of environmental social and governance (ESG) performance on financial performance. At the same time, it also explores the mediating effects of financing constraints, information transparency, and corporate reputation [...] Read more.

Based on the perspective of systematic tail risk, this study aims to explore the impact of environmental social and governance (ESG) performance on financial performance. At the same time, it also explores the mediating effects of financing constraints, information transparency, and corporate reputation in this relationship. This study uses the data from Chinese A-share listed companies from 2009 to 2022 as samples, uses two-way fixed-effect regression to test the benchmark model and mechanism model, and conducts a series of robustness tests and heterogeneity tests. The findings show that the following: (1) ESG performance significantly reduces systematic tail risk, with individual tail risk driving this negative relationship. (2) ESG performance lowers systematic tail risk through alleviating financing constraints, improving information transparency, and enhancing corporate reputation. (3) The inhibitory effect of ESG on systematic tail risk is more pronounced in the non-state-owned, low-pollution, high-liquidity, and high-information-efficiency samples. (4) Among the three dimensions of ESG, governance (G) has the most substantial impact in reducing systematic tail risk, compared to environmental (E) and social (S). This study is the first to explore the role of ESG performance on financial performance from the perspective of systematic tai risk. At the same time, we discuss for the first time how ESG performance affects tail system risk. This study contributes to an in-depth exploration of ESG’s role in financial performance, providing insights for preventing financial risk and achieving sustainable development. Full article

(This article belongs to the Special Issue Sustainable Governance: ESG Practices in the Modern Corporation)

28 pages, 636 KiB

Open AccessArticle

Nexus Between Intellectual Capital and Sustainable Growth: Moderating Roles of Military-Experienced CEOs and Sustainable Corporate Governance

by Muhammad Usman Arshad, Rafique Ur Rehman Memon, Waleed Anwar, Fayaz Hussain Tunio and Paulo Jorge Silveira Ferreira

Sustainability 2024, 16(23), 10533; https://doi.org/10.3390/su162310533 - 30 Nov 2024

Cited by 1 | Viewed by 1335

Abstract

This study explores the nexus between intellectual capital (IC) and the sustainable growth rate (SGR), with a unique emphasis on the moderating roles of military-experienced CEOs (MCEOs) and sustainable corporate governance (SCG). We utilize the Method of Movement Quantile Regression Analysis (MMQR) with [...] Read more.

This study explores the nexus between intellectual capital (IC) and the sustainable growth rate (SGR), with a unique emphasis on the moderating roles of military-experienced CEOs (MCEOs) and sustainable corporate governance (SCG). We utilize the Method of Movement Quantile Regression Analysis (MMQR) with data gathered from 750 Chinese non-financial firms listed on the Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) from 2010 to 2022. The findings indicate that IC exerts a favorable and significant influence on the SGR across various quantiles. Furthermore, across multiple quantiles, the SGR exhibits a positive and strong correlation with capital employed efficiency (CEE), human capital efficiency (HCE), and structural capital efficiency (SCE). Moderation analysis reveals that MCEOs and SCG demonstrate a positive correlation between IC and the SGR. The results extend our understanding of how MCEOs and SCG can enhance the SGR through effective IC utilization. Full article

(This article belongs to the Special Issue Sustainable Governance: ESG Practices in the Modern Corporation)

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16 pages, 255 KiB

Open AccessArticle

A Study on the Impact of Board Characteristics on the Environmental, Social, and Governance (ESG) Responsibilities of Listed Companies—Evidence from Chinese Listings

by Haoming Ding, Zerui Wang, Hanyu Xu and Zi Lin

Sustainability 2024, 16(23), 10490; https://doi.org/10.3390/su162310490 - 29 Nov 2024

Cited by 2 | Viewed by 3007

Abstract

Company boards play a critical role in ESG leadership by shaping strategy, ensuring accountability, and driving sustainability practices. However, ineffective board structures can hinder ESG goals, making the identification of board attributes that enhance ESG outcomes essential. Using data from 1931 A-share listed [...] Read more.

Company boards play a critical role in ESG leadership by shaping strategy, ensuring accountability, and driving sustainability practices. However, ineffective board structures can hinder ESG goals, making the identification of board attributes that enhance ESG outcomes essential. Using data from 1931 A-share listed companies between 2009 and 2022, this study investigates how board characteristics, such as independence, independent directors’ overseas experience, board size, and gender diversity, affect environmental, social, and governance (ESG) performance. The analysis reveals that the combined influence of board characteristics positively impacts ESG outcomes. Among individual attributes, board independence and independent directors with overseas education backgrounds significantly enhance ESG ratings, emphasizing the value of independent oversight and global perspectives. In contrast, board size and gender diversity show no significant impact, suggesting that simply increasing board size or representation does not necessarily improve ESG performance. Unlike prior studies focusing on isolated board characteristics, this research comprehensively analyzes how various attributes influence ESG outcomes. This study fills a critical gap in the ESG literature by addressing these complex dynamics. It offers actionable insights for policymakers and corporate governance reformers to improve business practices’ accountability, transparency, and sustainability. Full article

(This article belongs to the Special Issue Sustainable Governance: ESG Practices in the Modern Corporation)

20 pages, 1122 KiB

Open AccessArticle

Environmental Justice Specialization and Corporate ESG Performance: Evidence from China Environmental Protection Court

by Yue Meng and Xiaolei Yang

Sustainability 2024, 16(21), 9531; https://doi.org/10.3390/su16219531 - 1 Nov 2024

Viewed by 1790

Abstract

In order to implement the dual-carbon strategy and achieve sustainable economic development, it is essential to guarantee environmental protection through the establishment of an effective environmental rule of law. This study employs a quasi-natural experiment, namely the establishment of environmental protection courts in [...] Read more.

In order to implement the dual-carbon strategy and achieve sustainable economic development, it is essential to guarantee environmental protection through the establishment of an effective environmental rule of law. This study employs a quasi-natural experiment, namely the establishment of environmental protection courts in China’s intermediate people’s courts, to investigate the impact on the ESG performance of A-share listed companies from 2010 to 2022. A double-difference model is utilized for this purpose. This study reveals that the specialization of environmental justice is an effective means of promoting the ESG performance of enterprises. The results of mechanism tests indicate that the specialization of environmental justice has a positive impact on the ESG performance of enterprises, primarily by enhancing external supervision and garnering greater media attention and analyst interest. Furthermore, heterogeneity analysis reveals that the influence of environmental justice specialization on corporate ESG performance is particularly pronounced in eastern regions, contexts characterized by high environmental uncertainty and heavily polluting enterprises. These findings offer invaluable insights into the development of environmental justice and the advancement of sustainable economic growth. Full article

(This article belongs to the Special Issue Sustainable Governance: ESG Practices in the Modern Corporation)

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20 pages, 1350 KiB

Open AccessArticle

Textual Attributes of Corporate Sustainability Reports and ESG Ratings

by Jie Huang, Derek D. Wang and Yiying Wang

Sustainability 2024, 16(21), 9270; https://doi.org/10.3390/su16219270 - 25 Oct 2024

Cited by 3 | Viewed by 4393

Abstract

While the textual attributes of corporate financial documents, such as annual reports, have been extensively analyzed in the academic literature, those of corporate sustainability reports, which serve as a critical channel for nonfinancial disclosure, are relatively under-explored. Given the increasing importance of Environmental, [...] Read more.

While the textual attributes of corporate financial documents, such as annual reports, have been extensively analyzed in the academic literature, those of corporate sustainability reports, which serve as a critical channel for nonfinancial disclosure, are relatively under-explored. Given the increasing importance of Environmental, Social, and Governance (ESG) factors in corporate strategy and stakeholder evaluation, understanding the role of textual attributes in sustainability reporting is crucial. This study examines 10,021 hand-collected sustainability reports from Chinese firms between 2009 and 2021, focusing on six key textual attributes: length, readability, tone, boilerplate language, redundancy, and completeness. Using computational linguistics, we analyze how these attributes evolve over time and their impact on ESG ratings provided by both international (MSCI, FTSE) and domestic (SNSI) agencies. Our findings reveal that the length and completeness of sustainability reports significantly influence ESG scores across agencies, demonstrating a shared appreciation for detailed and transparent disclosures. However, international and domestic rating agencies exhibit differing responses to attributes like tone, boilerplate language, and redundancy. These differences highlight variations in evaluation standards, methodologies, and value orientations between global and local stakeholders. The results emphasize the need for firms to tailor their sustainability disclosures to meet diverse stakeholder expectations. This study contributes to the growing body of literature on nonfinancial reporting by providing empirical evidence on how specific textual characteristics of sustainability reports can shape ESG evaluations, offering insights for both corporate communicators and policymakers. Full article

(This article belongs to the Special Issue Sustainable Governance: ESG Practices in the Modern Corporation)

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