Sustainable Governance and ESG Awareness: Evidence From Tunisian Investors

Abstract

This study explores how investors in Tunisia perceive the country's 2021 Environmental, Social, and Governance (ESG) reporting guidelines, with a particular focus on implications for corporate governance. Using qualitative data from 20 semistructured interviews with financial analysts, investment managers, and regulators, the findings reveal low overall awareness of the ESG framework but growing investor expectations for enhanced governance practices. These expectations include stronger board oversight, ESG-linked executive compensation, and greater organizational accountability. While ESG adoption in Tunisia remains limited, investor insights point to significant potential for ESG principles to drive corporate governance reforms and promote sustainable business strategies. The research highlights the critical role of regulatory clarity, data availability, and targeted ESG education in aligning investor and organizational objectives. This paper contributes to the literature on ESG integration in emerging markets and emphasizes the strategic importance of investor engagement in shaping governance outcomes. It also offers practical implications for policymakers and business leaders seeking to improve ESG implementation and investor confidence in transitional economies. While the study is limited by its sample size and early-stage context, it opens pathways for future comparative and longitudinal research on ESG-driven governance transformation.