Search Results (154)

Securing thermal comfort while minimizing energy consumption in educational buildings is vital for achieving sustainable development goals. Drawing on the Environmental, Social, and Governance (ESG) framework, this systematic review synthesizes findings from 84 peer-reviewed studies published over the past decade, with a focus on how thermal comfort and energy use are assessed in educational contexts. The review identifies three primary research themes: climate resilience, multidimensional human-centric design, and energy decarbonization. However, it also reveals that existing studies have placed disproportionate emphasis on the environmental dimension, with insufficient exploration of issues related to social equity and governance structures. To address this gap, this study introduces an ESG-driven theoretical framework encompassing seven dimensions: thermal environment stability, multimodal thermal comfort assessment integration, sustainable energy use, heterogeneous thermal demand equality, passive–active design synergy, participatory thermal data governance, and educational thermal well-being inclusivity. By fostering interdisciplinary convergence and emphasizing inclusive stakeholder engagement, the proposed framework provides a resilient and adaptive foundation for enhancing indoor environmental quality in educational buildings while advancing equitable climate and energy strategies. Full article

Digital technology has become an essential engine of green development and economic progress due to the meteoric rise of new technologies. Our paper seeks to explore the impact of digitalization on environmental, social and governance (ESG) performance in different business contexts. Data were collected from listed firms across 19 Asian countries from 2015 to 2024, covering 1839 firms, yielding 18,390 firm-year observations and establishing a balanced panel data set. We used the dynamic panel data model to test the proposed hypotheses. The findings revealed that digitalization has a significant and positive impact on ESG performance. It also revealed that environmental uncertainty moderates this relationship. Moreover, our analysis indicated that the impact of digitalization on ESG performance is stronger for product (vs. service) firms, stronger for B2B (vs. B2C) firms and stronger for firms in IT-intensive industries. In addition, the analysis indicated that the impact of digitalization on ESG performance is stronger in more dynamic, complex and munificent environments. Our examination offers meaningful implications for theory and practice by expanding our knowledge of the complex mechanism underpinning the positive correlation between digitalization and ESG performance. Full article

This research examines the relationship between environmental, social safety and governance risks, and the mitigation strategies of the host country to enhance project performance in the China–Pakistan Economic Corridor (CPEC). The study concludes that the timely and effective completion of CPEC projects is challenged by environmental, social safety, and governance (ESG) risks, including environmental degradation, security threats, and governance issues. Based on the data of 618 respondents from Pakistan and using Structural Equation Modeling (SEM) through SMART PLS 4, the study investigates the impact of sustainable environmental practices, safety and security measures, governance risk mitigation actions, and project management systems on the project performance of CPEC projects. The results show that mitigation efforts implemented by the host country reduce the ESG investment risk and yield a positive effect on the project performance. Hence, this paper will show the importance of proactive measures such as sustainable development practices, security risk management systems, and transparent governance practices in matching challenges and enhancing project benefits. This research reinforces the potential for these risks to be mitigated through the adoption of innovative technologies. Innovation in environments, social protection, and governance frameworks can greatly mitigate the negative impacts of risks, directly improving the outcomes of project delivery. Infrastructure projects are extremely challenging to manage, and this study gives key hints for enhancing project safety and risk management in those types of infrastructure projects for practitioners, policymakers, project managers, and other stakeholders to establish innovative, sustainable strategies. Full article

Demands for companies to comply with environmental, social, and governance (ESG) requirements are growing, and companies are also expected to play a role in promoting sustainable development. For companies to achieve sustainable growth while addressing ESG, it must be understood whether ESG activities promote improved corporate financial performance. We conducted a five-year panel data analysis of 635 Japanese firms from FY 2019 to FY 2023, using the PBR, PER, and ROE financial indicators as the dependent variables and CSR ratings in the human resource utilization (HR), environment (E), governance (G), and social (S) categories as the independent variables. The results revealed that, depending on the combination of ESG field and financial indicators, companies with advanced ESG initiatives had greater financial performance, with some cases showing a nonlinear relationship; differences in the results between manufacturing and nonmanufacturing industries were also observed. For companies to effectively advance ESG activities, it is important to clarify the objectives and results for each ESG category. For policymakers to consider measures to encourage companies’ ESG activities, it is also important to design finely tuned regulations and incentives according to the ESG category and industry characteristics. Full article

As Environmental, Social, and Governance (ESG) gradually become the common language for sustainable development of international society and international cooperation in China, it is worth discussing whether ESG practices can help Chinese enterprises shape a responsible international image, overcome the liability of foreignness (LOF) and improve the long-term performance of cross-border mergers and acquisitions (M&As). On the basis of theoretical discussion, combined with the panel data of cross-border M&As of China A-share listed companies from 2010 to 2021, this paper empirically examines that the ESG performance of acquirers has a significant positive impact on the long-term performance of cross-border mergers and acquisitions (M&As) of China A-share listed companies. Furthermore, the ESG performance of environment and governance dimensions and heavily polluting enterprises has stronger incentive effects on the long-term performance of cross-border M&As. The ESG performance of the acquirer positively affects the long-term performance of cross-border M&As of China A-share listed companies by acquiring capital market resources, product market competitiveness, regulatory legitimacy, and enhancing internal synergy. Full article

In this work, we examine the correlation between financial inclusion and the Environmental, Social, and Governance (ESG) factors of sustainable development with the assistance of an exhaustive panel dataset of 103 emerging and developing economies spanning 2011 to 2022. The “Account Age” variable, standing for financial inclusion, is the share of adults owning accounts with formal financial institutions or with the providers of mobile money services, inclusive of both conventional and digital entry points. Methodologically, the article follows an econometric approach with panel data regressions, supplemented by Two-Stage Least Squares (2SLS) with instrumental variables in order to control endogeneity biases. ESG-specific instruments like climate resilience indicators and digital penetration measures are utilized for the purpose of robustness. As a companion approach, the paper follows machine learning techniques, applying a set of algorithms either for regression or for clustering for the purpose of detecting non-linearities and discerning ESG-inclusion typologies for the sample of countries. Results reflect that financial inclusion is, in the Environmental pillar, significantly associated with contemporary sustainability activity such as consumption of green energy, extent of protected area, and value added by agriculture, while reliance on traditional agriculture, measured by land use and value added by agriculture, decreases inclusion. For the Social pillar, expenditure on education, internet, sanitation, and gender equity are prominent inclusion facilitators, while engagement with the informal labor market exhibits a suppressing function. For the Governance pillar, anti-corruption activity and patent filing activity are inclusive, while diminishing regulatory quality, possibly by way of digital governance gaps, has a negative correlation. Policy implications are substantial: the research suggests that development dividends from a multi-dimensional approach can be had through enhancing financial inclusion. Policies that intersect financial access with upgrading the environment, social expenditure, and institutional reconstitution can simultaneously support sustainability targets. These are the most applicable lessons for the policy-makers and development professionals concerned with the attainment of the SDGs, specifically over the regions of the Global South, where the trinity of climate resilience, social fairness, and institutional renovation most significantly manifests. Full article

This study investigated how corporate maturity—measured through firm age and lifecycle stage—moderates the value relevance of Environmental, Social, and Governance (ESG) disclosures in a frontier market context, using Bangladesh as a case study. Drawing on panel data from 2011–2012 to 2023–2024 for 86 publicly listed non-financial firms, the study employed a modified Ohlson valuation framework, panel regression analysis, and multiple robustness techniques (2SLS, PSM). ESG disclosure was measured using a researcher-developed index aligned with international reporting standards (GRI, SASB, TCFD, UN SDGs). ESG disclosures are positively associated with firm value, but this relationship is significantly moderated by corporate maturity. Younger firms exhibit a stronger valuation effect from ESG transparency, driven by higher signaling and legitimacy needs. In contrast, mature firms experience a diminished marginal benefit, reflecting routine compliance rather than strategic differentiation. These findings challenge the uniform application of ESG assessment models and suggest the need for lifecycle-adjusted disclosure ratings, particularly in nascent regulatory environments like Bangladesh. Investors and regulators should tailor ESG evaluation criteria by firm age and industry sustainability exposure. Younger firms, often overlooked, may carry outsized ESG signaling value in emerging markets. Enhancing ESG transparency among younger firms can foster greater stakeholder trust, support inclusive growth, and strengthen social accountability in emerging economies. This study contributes to the ESG literature by introducing corporate maturity as a key moderating variable in value relevance analysis. It provides new empirical insights from a developing economy and proposes lifecycle-based adaptations to global ESG rating methodologies. Full article

The link between ESG and financial performance is still under debate. In this study, we explore which aspects of ESG specifically drive market valuations through both systematic and idiosyncratic risk channels. We analyze the impact of the three core ESG pillars, 10 subcategories, and associated controversies on market valuations in the energy sector. This analysis reveals that the environmental factor has a stronger impact (regression coefficient = 0.05) than the governance factor (regression coefficient = 0.003), emphasizing the need to prioritize environmental performance in ESG strategies. The positive coefficients for environmental resource use (0.005) and innovation (0.008) indicate that investments in efficiency and clean technologies are beneficial, while the negative coefficient for emissions (−0.004) underscores the risks associated with poor emissions management. These findings suggest that environmental risks currently outweigh governance risks for the energy sector, reinforcing the importance of aligning governance practices with environmental goals. To maximize ESG effectiveness, energy firms should focus on measurable improvements in resource efficiency, innovation, and emissions reduction and transparently communicate this progress to stakeholders. The evidence suggests that energy firms approach the ESG landscape differently, with sustainability leaders benefiting from higher valuations, particularly when ESG efforts are aligned with core competencies. However, many energy companies under-invest in value-creating environmental initiatives, focusing instead on emission management, which erodes value. While they excel in emission control, they lag in innovation, missing opportunities to enhance valuations. This underscores the potential for ESG risk analysis to improve portfolio performance, as sustainability can both create value and mitigate risks by factoring into valuation equations as both risks and opportunities. This study uniquely contributes to the ESG–financial performance literature by disentangling the specific ESG dimensions that drive market valuations in the energy sector, revealing that value is created not through emission control but through strategic alignment with eco-innovation, governance, and social responsibility. Full article

As ESG practices become increasingly embedded in global capital markets, their impact on firm financing costs remains an open question in emerging economies, where regulatory divergence and rating inconsistency complicate investor perceptions, particularly in China’s rapidly evolving financial environment. This study examines the impact of Environmental, Social, and Governance (ESG) performance on financing costs among Chinese non-financial listed firms, with a focus on the moderating roles of financial regulation and ESG rating divergence. Using a panel dataset of 4493 firms across 33,773 firm–year observations from 2011 to 2022, we employ a two-way fixed effects model, along with Propensity Score Matching and Difference-in-Differences (PSM-DID) techniques, to address endogeneity concerns and enhance causal inference. The findings reveal that improvements in ESG performance significantly reduce financing costs, substantially affecting debt relative to equity. Moreover, the cost-saving benefits of ESG are amplified in industries with stronger regulatory oversight, while high ESG rating divergence undermines these benefits by increasing uncertainty. These results highlight the importance of standardizing ESG rating systems and enhancing regulatory consistency. Such efforts can lower capital costs and improve financial access for firms, particularly in capital-intensive and environmentally sensitive sectors, offering actionable guidance for policymakers shaping disclosure frameworks and corporate managers optimizing ESG investment strategies. Full article

This paper introduces the Integrated Model for Sustainable Development (IMSD), a theory-driven governance framework that embeds Corporate Diversity Responsibility (CDR) into climate and energy policy to advance systemic equity, institutional resilience, and inclusive innovation. Grounded in Institutional Theory, the Resource-Based View (RBV), and Intersectionality Theory, IMSD unifies fragmented sustainability efforts across five pillars: Climate Sustainability, Social Sustainability (CDR), Governance Integration, Collaborative Partnerships, and Implementation and Monitoring. Aligned with SDGs 7, 10, and 13, IMSD operationalizes inclusive leadership, anticipatory adaptation, and equity-centered decision-making. It addresses the compounded climate vulnerabilities faced by women and marginalized groups in the Global South, integrating insights from Indigenous resilience and intersectional adaptation strategies. Unlike conventional CSR or ESG models, IMSD institutionalizes diversity as a strategic asset and governance principle. It transforms DEIB from symbolic compliance into a catalyst for ethical leadership, legitimacy, and performance in turbulent environments. The model’s modular structure supports cross-sector scalability, making it a practical tool for organizations seeking to align ESG mandates with climate justice and inclusive innovation. Future empirical validation of the IMSD framework across diverse governance settings will further strengthen its applicability and global relevance. IMSD represents a paradigm shift in sustainability governance—bridging climate action and social equity through theory-based leadership and systemic institutional transformation. Full article

This study investigates the moderating role of independent directors on corporate boards in raising the ESG reporting for non-financial listed firms in Pakistan to strive for a greener revolution around the economy. A sample of 369 firms listed and operated on the Pakistan Stock Exchange (PSX) for a period covering 2012–2023 (both inclusive) have been taken out of a target population of 456 non-financial listed firms. The results are investigated using bivariate, multiple, and hierarchical regression analyses. This study has significant findings in the context of Pakistan and can be generalized to struggling economies around the globe. The interventional role of independent directors has significant findings for the full model. Findings from the Corporate Social Responsibility Strategy Score (CSRSS) are inconclusive irrespective of the measurement method used, i.e., environmental innovation score (EIS) or environmental pillar score (EPS). Environmental, Social, Governance Score (ESGS) has revealed a positive and significant impact when EIS is used as a performance variable, whereas when EPS is taken as a performance measure, the results are significant and negative. Under the lens of stakeholders’ theory, upper echelon theory, and agency theory, this study contributes to the corporate governance domain and the literature on environmental improvisation and ESG reporting. Researchers, statutory authorities, and academicians can benefit from it. The vital role of independent directors is the key to developing economies to strive for a sustained greener environment. This study is the first in the Asian and, specifically, Pakistani context to take on the interventional role of independent directors in promoting ESG reporting requirements for corporate greener revolution efforts. Full article

The International Financial Reporting Standards (IFRS, 2023) guidelines have indicated the importance of holistic organisational sustainability values (profit, people, and planet) and the required human capital to implement sustainability business strategies to achieve sustainable development goals (SDGs). This empirical research using the strategic choice and sustainable human resource management resource-based theories explores the role of high-performance sustainable work practices (HPSWPs) with sustainability characteristics to shape the required human capital to implement simultaneous environmental, social, and governance (ESG) corporate sustainability business strategies aligned with the organisational sustainability orientation of firms. A total of 203 senior managers from Australian companies participated in this study. The participants completed survey questionnaires, which encompass the holistic organisational sustainability orientation, corporate sustainability business strategy, and high-performance sustainable work practices. The mediation study findings revealed that the social consciousness, stakeholder compassion, ethics of care for wellbeing, and pro-environment characteristics of high-performance sustainable work practices fully mediate the implementation of ESG corporate sustainability business strategies that are aligned with the holistic organisational sustainability orientation. This exploratory research extends the operational strategic choice theory from the sustainable human resource management resource-based perspective in highlighting the role of high-performance sustainable work practices in implementing the choice of environmental, social, and governance (financial) business strategies. Furthermore, the practical implications include improving the quality of voluntary sustainability disclosure by companies in alignment with the IFRS guidelines on management approaches relating to human resource practices to shape the required human capital with sustainability characteristics for corporate sustainability. Future empirical research directions in operationalising simultaneous ESG corporate sustainability business strategies using high-performance sustainable work practices aligned with the holistic sustainability orientation of firms are discussed. Full article

As global discourse increasingly centers on environmental, social, and governance considerations, ESG investment has become a major trend in financial markets. Artificial intelligence (AI), through its rapid evolution, has exerted a transformative influence that continues to reshape the fundamental structures of this domain. This study investigates the dynamic relationship between AI and ESG investment indices in China, aiming to reveal the bidirectional causal linkages and time-dependent interactions between these two critical areas. In methods, we used four different parameter stability tests to indicate that the Granger causality test based on the full-sample VAR model may produce biased results. Therefore, we employed a bootstrap rolling-window subsample Granger causality test using data from January 2013 to September 2024 in China. The results reveal a significant dynamic relationship between ESG investment and AI. In key findings, we find that AI exerts a negative impact on ESG investment. AI development attracts substantial capital inflows that favor technological advancement and commercialization over long-term ESG investments. Meanwhile, ESG investment shows both positive and negative effects on AI. The positive effect indicates that ESG investment promotes AI research and applications emphasizing energy efficiency, data privacy, and fairness, thereby supporting the sustainable development of AI technologies. However, driven by short-term economic returns, strict ESG standards and compliance requirements may, in the short term, constrain the development of certain energy-intensive or emerging AI technologies. In economic and political implications, our study provides policymakers with scientific evidence to improve the ESG investment environment and to design balanced policies that support both AI development and sustainable investment practices. It underscores the necessity of promoting coordinated development between AI and ESG investment to achieve global sustainability goals and recommends measures to align short-term economic interests with long-term ESG objectives. This study is expected to serve as a scientific basis for ESG goal-setting and contribute to the realization of China’s dual-carbon goals. In particular, it facilitates the convergence of artificial intelligence technologies with sustainable development initiatives and tells the importance of responsible technological progress for global sustainable development. Full article

In the past decade, the governance of urban space, in connection with the triad, environmental, social, and governance (ESG), has trended towards greater humanization to achieve urban sustainability and social harmony in China. With a focus on the case of the Waliu Community (Zhengzhou), this study investigates the evolution of environmental governance in its vending zones. As one of the earliest Chinese communities to transition from spatial exclusion to spatial inclusion and then to spatial self-management in environmental governance, the Waliu Community established two specific vending zones, Tea City and Shenglong. These zones have transformed the governing mindset of the community’s urban environment. The latest strategy of spatial self-management enables urban low-income groups to participate in the co-governance of the urban environment. The research methods used in this study range from spatial analysis and direct observation to semi-structured interviews; data and information are collected through field notes, official records, and designed questionnaires. The study investigates key indicators spatial utilization efficiency, vendor livelihood, social order and safety, and stakeholder satisfaction. Results demonstrate that spatial self-management effectively optimizes community traffic flow, enhances waste collection efficiency, and fosters consensus and collaboration among stakeholders. It is concluded that spatial self-management facilitates the sustainable production of urban spaces for their users within China’s complex urban contexts. Full article

This study aims to investigate how sustainable innovation (SI) influences the relationship between internal audit effectiveness (IAE) and sustainability auditing (SA) practices in Libya’s public sector, providing valuable insights into its implications for public finance governance and financial regulation. Additionally, it examines how audit standards and principles (ASPs) on SA practices emphasising their role in enhancing transparency, environmental, social, and governance (ESG) compliance, and overall financial oversight. A quantitative, cross-sectional survey design was employed, collecting 500 valid responses from financial and governmental institutions in Libya. Hierarchical regression and partial least squares structural equation modeling (PLS-SEM) were used to evaluate the relationships among IAE, SI, ASP, and SA practices, with robustness checks ensuring the reliability of findings. The findings demonstrate that IAE significantly reinforces SA practices, improving ESG accountability and reporting. SI positively moderates this relationship, indicating that innovative processes and tools strengthen the impact of effective internal audits on sustainability outcomes. Although ASP contributes to SA practices, its influence is more pronounced when combined with robust internal audit functions and sustainability initiatives. The results underscore the need to integrate innovation and transparent regulatory frameworks to optimise sustainability auditing and public finance management. While the study is confined to Libya’s public sector—potentially limiting broader generalizability—its insights may inform policy reforms and risk management strategies across diverse regulatory environments. Future research could include comparative analyses to investigate variations in other emerging or developed markets. This study adds to the literature by linking SI and ASP with internal audit frameworks, offering fresh perspectives on enhancing SA practices and ESG compliance in public finance settings. Full article