Search Results (69)

This study explores whether sustainability achievements—proxied through ESG (environmental, social, and governance) reporting—are associated with superior financial performance in Latvia’s manufacturing sector, where ESG maturity remains low and institutional readiness is still emerging. Building on stakeholder, legitimacy, signal, slack resources, and agency theories, this study applies a mixed-method approach (that consists of two analytical stages) suited to the limited availability and reliability of ESG-related data in the Latvian manufacturing sector. Financial indicators from three large firms—AS MADARA COSMETICS, AS Latvijas Finieris, and AS Valmiera Glass Grupa—are compared with industry averages over the 2019–2023 period using independent sample T-tests. ESG integration is evaluated through a six-stage conceptual schema ranging from symbolic compliance to performance-driven sustainability. The results show that AS MADARA COSMETICS, which demonstrates advanced ESG integration aligned with international standards, significantly outperforms its industry in all profitability metrics. In contrast, the other two companies remain at earlier ESG maturity stages and show weaker financial performance, with sustainability disclosures limited to general statements and outdated indicators. These findings support the synergy hypothesis in contexts where sustainability is internalized and operationalized, while also highlighting structural constraints—such as resource scarcity and fragmented data—that may limit ESG-financial alignment in post-transition economies. This study offers practical guidance for firms seeking competitive advantage through strategic ESG integration and recommends policy actions to enhance ESG transparency and performance in Latvia, including performance-based reporting mandates, ESG data infrastructure, and regulatory alignment with EU directives. These insights contribute to the growing empirical literature on ESG effectiveness under constrained institutional and economic conditions. Full article

Recent theoretical and empirical studies highlight that information asymmetry and owner–manager conflict of interest can distort corporate investment decisions. Building on this premise, we hypothesize that superior environmental, social, and governance (ESG) performance mitigates these frictions by (H1) alleviating financing constraints and (H2) intensifying external analyst scrutiny. To test these hypotheses, we examine all Shanghai and Shenzhen A-share non-financial firms from 2009 to 2023. Using panel fixed-effects and two-stage least squares with an industry–province–year instrument, we find that higher ESG performance significantly reduces investment inefficiency; the effect operates through both lower financing constraints and greater analyst coverage. Heterogeneity analyses reveal that the improvement is pronounced in small non-state-owned, non-high-carbon firms but absent in large state-owned high-carbon emitters. These findings enrich the literature on ESG and corporate performance and offer actionable insights for regulators and investors seeking high-quality development. Full article

Amid intensifying global ESG regulations and the expanding influence of green finance, China’s digital economy policies have emerged as key institutional instruments for promoting corporate sustainability. Leveraging the implementation of the National Big Data Comprehensive Pilot Zone as a quasi-natural experiment, this study utilizes panel data of Chinese listed firms from 2009 to 2023 and applies multi-period Difference-in-Differences (DID) and Spatial DID models to rigorously identify the policy’s effects on corporate ESG performance. Empirical results indicate that the impact of digital economy policy is not exerted through a direct linear pathway but operates via three institutional mechanisms, enhanced information transparency, eased financing constraints, and expanded fiscal support, collectively constructing a logic of “institutional embedding–governance restructuring.” Moreover, disruptive technological innovation significantly amplifies the effects of the transparency and fiscal mechanisms, but exhibits no statistically significant moderating effect on the financing constraint pathway, suggesting a misalignment between innovation heterogeneity and financial responsiveness. Further heterogeneity analysis confirms that the policy effect is concentrated among firms characterized by robust governance structures, high levels of property rights marketization, and greater digital maturity. This study contributes to the literature by developing an integrated moderated mediation framework rooted in institutional theory, agency theory, and dynamic capabilities theory. The findings advance the theoretical understanding of ESG policy transmission by unpacking the micro-foundations of institutional response under digital policy regimes, while offering actionable insights into the strategic alignment of digital transformation and sustainability-oriented governance. Full article

Emerging markets face growing pressures to integrate sustainable English business practices while maintaining economic growth, particularly in addressing environmental challenges and achieving carbon neutrality goals. English Financial information extraction becomes crucial for supporting green finance initiatives, Environmental, Social, and Governance (ESG) compliance, and sustainable investment decisions in these markets. This paper presents FinATG, an AI-driven autoregressive framework for extracting sustainability-related English financial information from English texts, specifically designed to support emerging markets in their transition toward sustainable development. The framework addresses the complex challenges of processing ESG reports, green bond disclosures, carbon footprint assessments, and sustainable investment documentation prevalent in emerging economies. FinATG introduces a domain-adaptive span representation method fine-tuned on sustainability-focused English financial corpora, implements constrained decoding mechanisms based on green finance regulations, and integrates FinBERT with autoregressive generation for end-to-end extraction of environmental and governance information. While achieving competitive performance on standard benchmarks, FinATG’s primary contribution lies in its architecture, which prioritizes correctness and compliance for the high-stakes financial domain. Experimental validation demonstrates FinATG’s effectiveness with entity F1 scores of 88.5 and REL F1 scores of 80.2 on standard English datasets, while achieving superior performance (85.7–86.0 entity F1, 73.1–74.0 REL+ F1) on sustainability-focused financial datasets. The framework particularly excels in extracting carbon emission data, green investment relationships, and ESG compliance indicators, achieving average AUC and RGR scores of 0.93 and 0.89 respectively. By automating the extraction of sustainability metrics from complex English financial documents, FinATG supports emerging markets in meeting international ESG standards, facilitating green finance flows, and enhancing transparency in sustainable business practices, ultimately contributing to their sustainable development goals and climate action commitments. Full article

Environmental, social, and governance (ESG) evaluation has become increasingly critical for company sustainability assessments, especially for enterprises in the construction industry with a high environmental burden. However, existing methods face limitations in subjective evaluation, inconsistent ratings across agencies, and a lack of industry-specificity. To address these limitations, this study proposes a large language model (LLM)-based intelligent ESG evaluation model specifically designed for the construction enterprises in China. The model integrates three modules: (1) an ESG report information extraction module utilizing natural language processing and Chinese pre-trained language models to identify and classify ESG-relevant statements; (2) an ESG rating prediction module employing XGBoost regression with SHAP analysis to predict company ratings and quantify individual statement contributions; and (3) an ESG intelligent evaluation module combining knowledge graph construction with fine-tuned Qwen2.5 language models using Chain-of-Thought (CoT). Empirical validation demonstrates that the model achieves 93.33% accuracy in the ESG rating classification and an R² score of 0.5312. SHAP analysis reveals that environmental factors contribute most significantly to rating predictions (38.7%), followed by governance (32.0%) and social dimensions (29.3%). The fine-tuned LLM integrated with knowledge graph shows improved evaluation consistency, achieving 65% accuracy compared to 53.33% for standalone LLM approaches, constituting a relative improvement of 21.88%. This study contributes to the ESG evaluation methodology by providing an objective, industry-specific, and interpretable framework that enhances rating consistency and provides actionable insights for enterprise sustainability improvement. This research provides guidance for automated and intelligent ESG evaluations for construction enterprises while addressing critical gaps in current ESG practices. 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

Packaging waste is a major environmental issue, making the transition to sustainable solutions imperative. This article proposes the concept of Shared Producer Responsibility (SPR) as a key approach to advancing sustainable packaging in the fast-moving consumer goods (FMCG) sector. The study explores how the United Nations Sustainable Development Goals (SDGs), environmental, social, and governance (ESG) reporting, and stakeholder engagement converge to support this transition. The research identifies current trends, challenges, and gaps in sustainable packaging practices through a systematic literature review (SLR) and analysis of sustainability and ESG reports from leading FMCG and packaging companies. The findings highlight the need for standardised reporting frameworks and improved stakeholder cooperation to enhance transparency and accountability in sustainability efforts. This study proposes a conceptual framework for accelerating sustainable packaging adoption through combining strategies like consumer education, regulatory incentives, and clear product labelling. The proposal to implement the concept of Shared Producer Responsibility emphasises the shared accountability of FMCG companies and packaging manufacturers in managing the full environmental lifecycle of packaging materials. This approach is crucial for achieving SDG 12 (responsible consumption and production) and SDG 13 (climate action) and driving more effective and sustainable packaging practices across the FMCG industry. Full article

ESG serves as a key metric for measuring corporate sustainability, but divergence among rating agencies has led to uncertainty in such an assessment. This investigation identifies ESG rating divergence as a critical catalyst for corporate digital transformation, establishing empirical analysis through a robust positive correlation between the heterogeneity in sustainability assessments and organizational digitalization intensity. Comprehensive robustness examinations and endogeneity controls substantiate the persistent significance of this relationship. Mechanistically, such divergence drives technological adaptation by restructuring the R&D team composition and elevating capital allocation toward innovative initiatives. Contextual heterogeneity manifests through amplified effects in firms with elevated analyst scrutiny and stringent internal governance, whereas pollution-intensive enterprises exhibit significant effect suppression. These findings collectively advance theoretical frameworks concerning ESG evaluation economics and digital transformation drivers, while furnishing actionable implementation blueprints for corporate digitization strategists. Full article

This study conducts a comparative assessment of the environmental, social, and governance (ESG) integration strategies of three leading companies in Hong Kong—H&M Group, China Gas Company Limited (Towngas), and MTR Corporation Limited (MTR)—each operating in distinct sectors with unique sustainability challenges and opportunities. The analysis adopts the Challenge–Evaluation–Planning–Action–Review (CEPAR^®) framework developed by the International Chamber of Sustainable Development to examine how these companies identify and evaluate ESG-related risks, formulate action plans, implement sustainability initiatives, and refine their strategies. The findings reveal H&M’s strong emphasis on sustainable fashion, with a target of using 100% sustainable materials by 2030 and reducing greenhouse gas emissions by 56%. Towngas faces the complex challenge of transitioning from fossil fuels to cleaner energy and is investing in zero-carbon technologies to meet regulatory standards and stakeholder expectations. MTR focuses on sustainable urban development and efficient mass transit, prioritizing community engagement and reducing environmental impact. This study underscores the importance of sector-specific ESG approaches tailored to a company’s operational context. It also demonstrates how ESG integration is enhanced by proactive planning, transparent reporting, and alignment with long-term corporate values. By showcasing both successful practices and areas requiring further attention, this research contributes to the broader discourse on sustainable business practices in Hong Kong. Moreover, it provides actionable policy implications for government agencies and regulatory bodies. The insights gained can inform strategic decision-making across sectors and support the development of a more sustainable, resilient, and inclusive economy aligned with Hong Kong’s long-term climate and governance goals. 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 finance, accounting, and digital disruption (FADD) in the relationship between auditing and sustainability (AS) and financial reporting and ESG integration (FRESGI) through the triple-helix perspective. Drawing on data from 200 experts across corporate, academic, and governmental sectors in Kosovo (2024–Q1 2025), the research applied advanced statistical techniques, including EFA, CFA, and moderation analysis using SPSS and AMOS, to explore both direct and interaction effects. The results reveal that FADD significantly enhances ESG integration, with strong direct effects observed in the corporate sector (β = 0.259, p < 0.001) and public institutions (β = 0.281, p < 0.001). However, the moderation analysis shows that the government dimension of FADD (FADD_2) negatively influences the relationship between corporate sustainability practices (AS_1) and ESG reporting, indicating limited coordination across sectors. These findings highlight the need for aligned, sector-specific strategies that harness digital innovation and financial transformation to strengthen sustainable auditing and reporting practices. This study provides actionable insights for policymakers, practitioners, and academics working to advance ESG integration across complex institutional ecosystems. Full article

As Saudi Arabia accelerates its Vision 2030 agenda, sustainable urban development has emerged as a critical pillar for economic diversification and climate resilience. This study investigates the role of green municipal bonds (GMBs) as a catalytic financing tool to address funding gaps in low-carbon infrastructure and renewable energy projects within the Kingdom’s arid, fossil-fuel-dependent context. Employing a mixed-methods approach—combining qualitative case studies of global best practices (e.g., Gothenburg, Cape Town) and quantitative analysis of Saudi municipal financial data—we evaluate the feasibility of GMBs in bridging fiscal shortfalls while aligning with environmental, social, and governance (ESG) criteria. The research introduces a novel conceptual framework that integrates regulatory harmonization, stakeholder coordination, and Shariah-compliant financial mechanisms, tailored to Saudi Arabia’s socio-economic and climatic realities. Key findings reveal that GMBs could cover 40% of municipal revenue gaps, attract global ESG investors, and reduce carbon emissions by 30% through projects such as NEOM’s renewable grids and Riyadh’s urban greening initiatives. By addressing underexplored intersections of fossil-fuel transitions, arid-climate governance, and Islamic finance, this study advances sustainable urban scholarship and offers actionable policy recommendations, including a phased roadmap for GMB adoption and the establishment of a Saudi Green Bond Taskforce. The results position Saudi Arabia as a regional leader in climate-resilient finance, providing replicable insights for resource-dependent economies pursuing carbon neutrality. Full article

Climate change presents a critical challenge to achieving the 2030 Sustainable Development Goals (SDGs), particularly SDG 13 on Climate Action. This study examined the effect of corporate governance on carbon emission disclosure and carbon performance among 150 non-financial firms listed on the Indonesia Stock Exchange (IDX) from 2016 to 2022. Drawing on stakeholder, legitimacy, agency, and resource dependence theories, the study utilized panel data comprising 468 firm-year observations and employed ordinary least squares (OLS) regression to assess both direct and moderating effects. The findings indicate that governance attributes covering board size, board gender diversity, foreign ownership, and the presence of a CSR committee had a positive effect on carbon emission disclosure and carbon performance. Moreover, these governance factors enhanced the correlation between disclosure and performance, suggesting that robust governance could strengthen the environmental impact of transparency. However, board independence exhibited a negative or statistically insignificant effect, highlighting a potential disconnect between governance expectations and environmental oversight in emerging markets. Despite increasing awareness, the levels of carbon disclosure and performance in Indonesia remained low, averaging only 27.8% and 6.6%, respectively. This study provides policy recommendations to strengthen ESG regulations, encourages firms to institutionalize sustainability practices, and calls for cross-country comparative research to improve generalizability. Full article

The environmental, social, and governance (ESG) framework is critical for promoting sustainability in industries with substantial environmental impacts, such as the paint industry. Despite its significant contribution to Indonesia’s gross domestic product (GDP), the paint industry faces challenges in adopting ESG principles, including dependency on hazardous materials, reliance on imported raw materials, and limited participation in sustainability initiatives. This study develops an ESG-oriented business model by examining the influence of governance, environmental, and social dimensions on economic performance within Indonesia’s paint industry supply chain. Using structural equation modeling—partial least squares (SEM-PLS) and data from 170 stakeholders, the findings confirm that all three ESG dimensions positively and significantly impact economic outcomes. This model underscores the necessity of integrating ESG principles to enhance resilience, adaptability, and social responsibility while mitigating environmental risks. The study provides actionable insights for policymakers and industry stakeholders to implement ESG-driven strategies that align sustainability goals with economic growth. However, limitations such as geographical scope, short-term analysis, and broad coverage of supply chain activities highlight the need for further research to ensure generalizability and long-term applicability. Full article