A Systematic Review of the ESG Strategy Literature and Future Outlook

Abstract

This review investigates the importance of ESG factors in determining the long-term development and investment performance of companies, and identifies existing challenges and future directions in ESG strategy research. Through a comprehensive review and analysis of the existing literature on ESG strategy, the study highlights the key findings, implications, and future research directions in this field. The research underscores that incorporating ESG factors into corporate strategies enhances overall performance and contributes to sustainable development, while also revealing various implementation challenges such as difficulties in quantifying ESG factors and navigating diverse ESG criteria and assessment systems. This study presents an interdisciplinary approach to address ESG strategy research challenges, emphasizing the importance of harmonizing ESG standards and leveraging new technologies for improved data collection and analysis. The review acknowledges the limitations in current ESG strategy research, and suggests future research directions focusing on addressing these limitations, identifying suitable ESG evaluation criteria, and exploring the integration of new technologies in ESG investment. The findings stress the need for senior leadership support, establishment of a systematic framework, and effective communication with stakeholders for successful ESG strategy implementation, ultimately ensuring long-term competitiveness and sustainability for organizations.