From Scores to Impact: A Literature Review on ESG and Global Sustainability Drivers

Abstract

Environmental, Social, and Governance (ESG) has evolved from a scoring system into a strategic tool critical to global sustainability. This study examines the transformation of ESG by focusing on score evaluation, its impact on financial performance and environmental sustainability, implementation challenges, as well as the role of technology and holistic approaches. Findings reveal that strong ESG performance enhances financial stability, attracts investments, and bolsters corporate resilience against external risks. However, challenges such as greenwashing, pillar disparities, and reporting harmonization gaps remain significant barriers. By integrating advanced technologies like machine learning and blockchain and adopting holistic approaches that consider social, environmental, and financial values, ESG can serve as a key driver of global sustainability. This study provides valuable insights into the role of ESG as a strategic tool for fostering a greener, more inclusive, and sustainable economy.