ESG Reporting and Firm Value: A Systematic Literature Review of Sustainability Disclosure Strategies
DOI:
https://doi.org/10.55927/ijabm.v5i3.12Keywords:
Sustainability Disclosure, Environmental, Social, and Governance (ESG)Abstract
This study synthesises empirical evidence on the effect of Environmental, Social, and Governance (ESG) factors on firm value using a Systematic Literature Review (SLR) approach, covering literature published between 2021 and 2025. A search on Google Scholar via Publish or Perish using the keyword "ESG AND firm value" yielded 35 final articles meeting all inclusion criteria. Narrative synthesis produced three principal findings. First, the majority of studies (60.0%) found a positive and significant effect of ESG on firm value. Second, considerable variation exists in ESG measurement proxies from rating-agency scores (Refinitiv, Bloomberg) to disclosure indices and ESG risk scores with industry-calibrated ESG Materiality Scores proving more informative than generic aggregates. Third, contextual factors including capital market development, ownership structure, industry characteristics, and temporal horizon significantly moderate the ESG firm value relationship. These findings carry important implications for managers designing ESG strategies and for investors integrating ESG considerations into investment decisions
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