The Secure Cyber Environment as a Determinant of Progress in Achieving ESG Compliance: A Global View

Abstract

Establishing a reliable and secure cyber environment that addresses modern challenges and threats in advancing Industry 4.0 and 5.0 is one of the top goals of sustainable development, according to the World Economic Forum. Providing a safe space minimises the risk of environmental disasters arising from cyberattacks on critical infrastructure. It plays an essential role in data protection, thereby increasing the trust of business and government organisations and enhancing their social responsibility. Protecting against fraud, information leaks, and massive cyberattacks is crucial to effective corporate governance and increased organisational transparency. This study aims to identify the correlation between ESG indicators and the essential components of the national cybersecurity framework. The empirical part of the study includes the analysis of data from 144 countries, where the implementation of cybersecurity and ESG practices has varied histories. The study used canonical analysis to assess the relationships between cybersecurity factors and environmental, social, and managerial factors. This study confirmed the existence of two-way effects between ESG factors and cybersecurity. Moreover, ESG factors are strongly associated with improvements in cybersecurity, highlighting the critical role of sustainable practices in protecting the digital environment. These results can serve as recommendations for integrating cybersecurity strategies into policies to achieve global ESG compliance.