Search Results (300)

International organizations have highlighted the importance of consistent and reliable environment, social and governance (ESG) disclosure and metrics to inform business strategy and investment decisions. Greater corporate disclosure is a positive signal to investors who prioritize sustainable investment. In this study, economic and climate sentiment are extracted from the integrated and sustainability reports of the top 40 corporates listed on the Johannesburg Stock Exchange, employing domain-specific natural language processing. The intention is to clarify the complex interactions between climate risk, corporate disclosures, financial performance and investor sentiment. The study provides valuable insights to regulators, accounting professionals and investors on the current state of disclosures and future actions required in South Africa. A time series analysis of the sentiment scores indicates a noticeable change in the corporates’ disclosures from climate-related risks in the earlier years to climate-related opportunities in recent years, specifically in the banking and mining sectors. The trends are less pronounced in sectors with good ESG ratings. An exploratory regression study reveals that climate and economic sentiments contain information that explain stock price movements over the longer term. The results have important implications for asset allocation and offer an interesting direction for future research. Monitoring the sentiment may provide early-warning signals of systemic risk, which is important to regulators given the impact on financial stability. Full article

Against the backdrop of increasingly severe global carbon emissions and China’s commitment to achieving carbon peaking by 2030, accelerating the transition to a low-carbon economy has become an urgent priority. As fundamental microeconomic entities, enterprises play a crucial role in the national governance of carbon emissions. This study uses panel data on Chinese A share listed companies from 2019 to 2023 and employs fixed effects models that control for firm, year, and industry effect to analyze how ESG performance influences carbon emissions and through which mechanism. The findings indicate that improvements in ESG ratings significantly reduce firms’ carbon emissions. This effect operates primarily through the following two channels: (1) promoting green technological innovation, thereby enhancing environmental performance, and (2) increasing the attention of financial analysts, which strengthens external monitoring. The heterogeneity analysis further reveals that the mitigating effect of ESG improvement on carbon emissions is more pronounced in firms with a lower proportion of institutional ownership, while this effect is relatively weaker in firms with higher institutional ownership. This suggests that in contexts where institutional investors hold a smaller share, firms may place greater emphasis on the policy pressure and social responsibility expectations associated with ESG performance, thereby exhibiting stronger commitment to emission reduction actions. In contrast, in firms dominated by institutional investors, the implementation of ESG policy objectives may be partially compromised due to the investors’ short-term profit orientation. This study provides empirical evidence for firms to fulfill their environmental and social responsibilities and offers actionable insights for investors aiming to promote sustainable development. From a policy perspective, the findings also offer theoretical support for developing differentiated regulatory strategies based on variations in ownership and shareholding structures. Full article

This study investigates the asymmetric responses of AI and ESG Exchange Traded Funds (ETFs) to geopolitical and financial uncertainty, with a focus on resilience across market regimes. The NASDAQ-100 and MSCI ESG Leaders indices are used as proxies for thematic ETFs, and their dynamic interlinkages are examined in relation to volatility indicators (VIX, GPR), alternative assets (Bitcoin, Ethereum, gold, oil, natural gas), and safe-haven currencies (CHF, JPY). A daily dataset spanning the 2016–2025 period is analyzed using Quantile-on-Quantile Regression (QQR) and Wavelet Coherence (WCO), enabling a granular assessment of nonlinear, regime-dependent behaviors across quantiles. Results reveal that ESG ETFs demonstrate stronger downside resilience under extreme uncertainty, maintaining stability even during periods of elevated geopolitical and financial risk. In contrast, AI-themed ETFs tend to outperform under moderate-risk conditions but exhibit greater vulnerability during systemic stress, reflecting differences in asset composition and investor risk perception. The findings contribute to the literature on ETF resilience and cross-asset contagion by highlighting differential behavior patterns under varying uncertainty regimes. Practical implications emerge for investors and policymakers seeking to enhance portfolio robustness through thematic diversification during market turbulence. Full article

Can supply chain strategies, ESG practices, and digital innovations be the game-changers the planet needs for a sustainable future? Motivated by this question, this study investigates the drivers of CO₂ emissions, focusing on supply chain management (GSC), ESG sustainability practices, and Information and Communication Technology (ICT) in China from 2002Q4 to 2024Q4. Utilizing a series of wavelet tools—including wavelet coherence (WTC), partial wavelet coherence (PWC), and multiple wavelet coherence (MWC)—the study uncovers associations across time and frequency domains. To the best of the authors’ knowledge, this is the first study to examine these dynamics within the Chinese context using advanced wavelet techniques. The WTC results reveal that GSC, ICT, and patents are positively associated with CO₂ emissions, particularly during 2008–2016 and 2018–2024, while ESG practices reduced emissions before 2016 but became positively linked to emissions afterward. MWC and PWC analyses confirm that these drivers influence CO₂ within 1–4-year bands, while wavelet Granger causality tests indicate weak short-term but strong medium- to long-term causal relationships among ESG, GSC, PAT, ICT, and CO₂ emissions. Based on these results, policy recommendations are formulated. Full article

This study examines the impact of environmental, social, and governance (ESG) practices on green innovation and financial performance among 174 publicly listed firms across ASEAN countries over the period from 2019 to 2023. Utilizing an unbalanced panel dataset of firms from key ASEAN economies, the analysis employs panel regression techniques. Green innovation performance is measured through innovation disclosures related to environmental technologies, while financial success is assessed via return on assets (ROA) and Tobin’s Q. The findings reveal that environmental and governance disclosure scores positively influence green innovation, whereas social scores exert a more immediate impact on financial performance. Moreover, green innovation is found to partially mediate the relationship between overall ESG practices and long-term market valuation. These results highlight the strategic role of ESG transparency in enhancing innovation-driven competitiveness, responsible business conduct, and sustainable employment across Southeast Asian markets. Implications are discussed for corporate managers, policymakers, and socially responsible investors. The study reinforces the case for ESG-aligned strategy as a pathway to both innovation, inclusive economic growth, and long-term competitiveness in ASEAN markets. Full article

Port resilience performance (PRP) is a critical factor in advancing the sustainable development of the 21st Century Maritime Silk Road (MSR). The Environmental, Social, and Governance (ESG) framework, widely recognized as a cornerstone of global sustainability efforts, offers a robust foundation for enhancing PRP. This study employs a system dynamics (SD) approach to explore the impact of ESG on PRP along the MSR. By developing an ESG evaluation index system and a resilience assessment framework, the research examines the mechanisms and evolutionary patterns through which ESG influences port resilience. Simulations are conducted for four strategic ports: Chattogram Port, Singapore Port, Gwadar Port, and Djibouti Port. The findings reveal that ESG initiatives significantly enhance PRP, with Singapore Port exhibiting the most stable and rapid resilience improvement. In contrast, the other ports demonstrate varying levels of adaptation and enhancement. Among the intervention strategies, prioritizing social dimension (S) improvements proves most effective for achieving rapid short-term resilience gains. This study offers both theoretical insights and practical strategies for strengthening port resilience and fostering sustainable development along the MSR. Full article

Amid global resource shortage and severe climate problems, green innovation has become the key for enterprises to achieve sustainable development, and supply chain digitization brings a new opportunity to enhance the green innovation capability of enterprises. Therefore, this paper empirically investigates the differential effects of supply chain digitization (SCD) on two different green innovation strategies, namely substantive green innovation (SGI) and tactical green innovation (TGI), with 38,548 observations of Chinese listed companies in the 17-year period from 2007 to 2023 using an innovative double machine learning model. It is found that SCD can significantly enhance the substantive and tactical green innovation capabilities of enterprises, and the promotion effect on the former is more obvious. Mechanism analysis shows that SCD promotes substantive green innovation by improving the ESG (Environmental, Social, and Governance) performance of enterprises, and promotes tactical green innovation by improving the management efficiency of supply chain nodes. Heterogeneity analysis shows that SCD promotes green innovation more significantly for high-tech firms, firms with high degree of internal control and low financing constraints. Our paper can be informative in addressing this differential impact of supply chain digitization on different types of corporate green innovation. Full article

This study presents the Wood Protection Sustainability Index (WPSI), a novel decision-support tool aimed at evaluating wood preservatives utilized in Chile and facilitating a shift toward more sustainable wood protection practices. WPSI encompasses four essential attributes: protection treatment, wood durability, in-service risk, and sustainability. These are assessed under two distinct scenarios. Scenario 1 represents current market practices, where chromated copper arsenate (CCA) remains prevalent due to its accessibility and affordable cost. In contrast, Scenario 2 prioritizes sustainability, demonstrating that copper azole (CA) and alkaline copper quaternary (ACQ) surpass CCA in performance, with CCA ranking lowest due to its environmental implications. Furthermore, a SWOT analysis accompanies the index, identifying key challenges and opportunities within Chile’s wood preservation industry. The findings highlight the importance of aligning national strategies with Environmental, Social, and Governance (ESG) frameworks, as well as the Sustainable Development Goals (SDGs), through performance-based regulations and safer alternatives. The WPSI can be integrated with local standards, regional risk classifications, and national preservative approval systems, allowing for meaningful comparison across diverse global contexts. This approach promotes more sustainable construction practices while ensuring both technical and economic viability. Full article

Portfolios incorporating environmental, social, and governance (ESG) criteria present distinct, unobserved risks, the empirical quantification of which has proven challenging. This difficulty stems from sustainable investment strategies being guided by both financial objectives and investors’ non-pecuniary preferences, which fundamentally alter a portfolio’s risk and return characteristics. To address this, we propose a novel methodology that identifies latent, ESG-specific risk factors by applying sparse principal component analysis (SPCA) to two-dimensional portfolio returns. Unlike approaches that rely on subjective judgment, our method extracts risk dimensions inherent to the return data itself. Our analysis reveals that the resulting firm-specific SPCA beta plays a dual role: it explains performance differentials across ESG-rated portfolios and exhibits a statistically significant, negative association with expected individual stock returns. The robust predictive performance of this SPCA-based risk factor confirms its practical utility for analyzing and managing diversification in ESG investing. Full article

We analyze ESG-related news coverage to examine media attention patterns as a reflection of stakeholders’ perceived salience of ESG issues at both the industry and firm levels, offering insights into the evolving nature of ESG materiality. Using longitudinal data visualization over an 11-year period, we show that media attention to ESG issues varies significantly over time and across firms within the same industry. While some issues receive consistent attention, others exhibit shifting patterns, signaling changing stakeholders’ perceived salience. Focusing on SASB-informed financially material ESG issues, we also show that perceived salience varies even among high-relevance topics. Some firms align with their industry’s patterns, while others diverge markedly, reinforcing the view that ESG materiality is both dynamic and firm-specific. These insights suggest that static ESG materiality assessment frameworks may be insufficient for informing long-term sustainability strategies or corporate disclosure practices. For investors, our results underscore the value of media-based ESG signals in complementing traditional materiality assessments. Acknowledging the evolving nature of ESG materiality is essential for firms and investors aiming to develop ESG strategies that respond to shifts in stakeholders’ perceived salience of ESG issues. Full article

This study investigates how Environmental, Social, and Governance (ESG) principles can be effectively integrated into the Balanced Scorecard (BSc) framework within local government organizations (LGOs) to enhance strategic planning and sustainability performance. Addressing a gap in the literature on ESG–BSc integration in the public sector, particularly in the Greek context, the study employs a dual-method approach. First, a bibliometric analysis of 3053 academic publications (1993–2025) was conducted using Scopus data to assess the evolution and thematic focus of ESG and BSc research. Second, a structured questionnaire—comprising both closed- and open-ended questions—was administered to 17 administrative staff members of a Greek LGO in 2024. This expert sample provided insights into strategic planning practices, ESG awareness, and performance management barriers. The findings reveal low levels of ESG–BSc application, a limited strategic capacity, and institutional resistance. In response, the study proposes a novel, context-sensitive ESG-integrated BSc model tailored for small municipalities, emphasizing stakeholder participation, operational simplicity, and the alignment with national sustainability policies. The model serves as a practical tool to support public sector performance measurement, bridging the gap between sustainability goals and local governance strategy. Full article

The construction sector, facing a persistent productivity gap compared to other industries, is hindered by fragmented value streams, inconsistent performance metrics, and the limited scalability of process improvements. We introduce a pioneering, four-tiered hierarchical productivity framework to respond to these challenges. This innovative approach integrates operational, tactical, strategic, and normative layers. At its core, the framework applies standardised, repeatable process steps—mapped using Value Stream Mapping (VSM)—to capture key indicators such as input efficiency, output effectiveness, and First-Time Quality (FTQ). These are then aggregated through takt time compliance, schedule reliability, and workload balance to evaluate trade synchronisation and flow stability. Higher-level metrics—flow efficiency, multi-resource utilisation, and ESG-linked performance—are integrated into an Overall Productivity Index (OPI). Building on a modular production model, the proposed framework supports real-time sensing, AI-driven monitoring, and intelligent process control, as demonstrated through an empirical case study of continuous process monitoring for Kelly drilling operations. This validation illustrates how sensor-equipped machinery and machine learning algorithms can automate data capture, map observed activities to standardised process steps, and detect productivity deviations in situ. This paper contributes to a multi-scalar measurement architecture that links micro-level execution with macro-level decision-making. It provides a foundation for real-time monitoring, performance-based coordination, and data-driven innovation. The framework is applicable across modular construction, digital twins, and platform-based delivery models, offering benefits beyond specialised foundation work to all construction trades. Grounded in over a century of productivity research, the approach demonstrates how emerging technologies can deliver measurable and scalable improvements. Framing productivity as an integrative, actionable metric enables sector-wide performance gains. The framework supports construction firms, technology providers, and policymakers in advancing robust, outcome-oriented innovation strategies. Full article

This study conducts an empirical examination of the impact of ESG (Environmental, Social, and Corporate Governance) performance on corporate investment efficiency, utilizing fixed-effects and mediation-effects models with a sample of 125 listed agribusiness companies in China from 2013 to 2022. The results of the fixed-effects regression indicate that superior ESG performance can effectively enhance corporate investment efficiency. Furthermore, the results of the mediation-effects analysis unveil the underlying mechanism through which ESG performance contributes to investment efficiency: by reducing agency costs and alleviating financing constraints. Moreover, the heterogeneity analysis suggests that ESG performance promotes investment efficiency more significantly in low-competition and moderately competitive market environments. By contrast, its effect may be somewhat muted in highly competitive markets. The findings of this study indicate that agribusiness companies should integrate ESG strategies, increase information transparency disclosure, and refine the allocation and management of resources in their operations. Full article

The outlook for biobased plastics in packaging applications is increasingly promising, driven by a combination of environmental advantages, technological innovation, and shifting market dynamics. Derived from renewable biological resources, these materials offer compelling benefits over conventional fossil-based plastics. They can substantially reduce greenhouse gas emissions, are often recyclable or biodegradable, and, in some cases, require less energy to produce. These characteristics position biobased plastics as a key solution to urgent environmental challenges, particularly those related to climate change and resource scarcity. Biobased plastics also demonstrate remarkable versatility. Their applications range from high-performance barrier layers in multilayer packaging to thermoformed containers, textile fibers, and lightweight plastic bags. Notably, all major fossil-based packaging applications can be substituted with biobased alternatives. This adaptability enhances their commercial viability across diverse sectors, including food and beverage, pharmaceutical, cosmetics, agriculture, textiles, and consumer goods. Several factors are accelerating growth in this sector. These include the increasing urgency of climate action, the innovation potential of biobased materials, and expanding government support through funding and regulatory initiatives. At the same time, consumer demand is shifting toward sustainable products, and companies are aligning their strategies with environmental, social, and governance (ESG) goals—further boosting market momentum. However, significant challenges remain. High production costs, limited economies of scale, and the capital-intensive nature of scaling biobased processes present economic hurdles. The absence of harmonized policies and standards across regions, along with underdeveloped end-of-life infrastructure, impedes effective waste management and recycling. Additionally, consumer confusion around the disposal of biobased plastics—particularly those labeled as biodegradable or compostable—can lead to contamination in recycling streams. Overcoming these barriers will require a coordinated, multifaceted approach. Key actions include investing in infrastructure, advancing technological innovation, supporting research and development, and establishing clear, consistent regulatory frameworks. Public procurement policies, eco-labeling schemes, and incentives for low-carbon products can also play a pivotal role in accelerating adoption. With the right support mechanisms in place, biobased plastics have the potential to become a cornerstone of a sustainable, circular economy. Full article

Brazilian sanitation companies disclose their sustainable practices through sustainability reports as part of their commitment to Sustainable Development Goal (SDG) 6 of the 2030 Agenda, which aims to ensure universal access to water and sanitation. This study proposes a methodology to evaluate how these companies integrate Environmental, Social, and Governance (ESG) principles into their management and disclosure practices, rather than assessing service delivery or operational outputs directly. These indicators were applied to the sustainability reports of Brazil’s three largest sanitation companies: Sabesp (Companhia de Saneamento Básico do Estado de São Paulo), Copasa (Companhia de Saneamento de Minas Gerais), and Sanepar (Companhia de Saneamento do Paraná). The results indicate that all three companies have incorporated sustainability into their competitive strategies and corporate governance practices. Sabesp demonstrated a stronger adherence in the environmental and governance dimensions, Copasa excelled in social performance while also performing well in governance, and Sanepar exhibited the lowest adherence among the three. Hence, we present a methodological framework for monitoring corporate ESG performance and governance practices aligned with SDG 6, focusing on their management and disclosure practices, rather than directly assessing service delivery or operational results. Full article