Bibliometric Analysis ESG and BD

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ESG AND CORPORATE GOVERNANCE: A SYSTEMATIC REVIEW
Article in Advanced International Journal of Business Entrepreneurship and SMEs · December 2023
DOI: 10.35631/AIJBES.518018
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Volume 5 Issue 18 (December 2023) PP. 185-204
DOI 10.35631/AIJBES.518018
ADVANCED INTERNATIONAL JOURNAL OF

BUSINESS, ENTREPRENEURSHIP AND SMES
(AIJBES)
www.aijbes.com
ESG AND CORPORATE GOVERNANCE: A SYSTEMATIC

REVIEW
Noor Hidayah Ab Aziz1*, Ahmed Razman Abdul Latif 2, Mohammad Noor Hisham Osman3, Sajead
Alshdaifat4
1
Faculty of Accountancy, Universiti Teknologi MARA, Johor Branch, Segamat Campus, Johor, Malaysia
Email: [email protected]
Putra Business School, Serdang, Malaysia.
2
3
School of Business and Economics, Universiti Putra Malaysia, Serdang, Malaysia
4
*
Corresponding Author
Article Info:
Abstract:
Article history: In an era when organisations are under more significant pressure to balance
Received date: 25.10.2023 operational effectiveness with ethical and environmental obligations, it is
Revised date: 10.11.2023 critical to comprehend the impact of environmental, social and governance
Accepted date: 18.12.2023 (ESG) on corporate governance (CG). This review aims to synthesize the
Published date: 26.12.2023 current body of literature, distinguishing significant themes, trends, and gaps
to present a structured synthesis of this field. This research utilised the
To cite this document: PRISMA framework. An advanced search strategy was performed using
Ab Aziz, N. H., Latif, A. R. A., Scopus and Web of Science databases to retrieve the relevant studies and
Osman, M. N. H., & Alshdaifat, S. articles concerning ESG, corporate governance, and their interaction utilising
(2023). ESG and Corporate the keyword (1. ESG 2. Board of Directors 3. Corporate Governance). The
Governance: A Systematic Review. result unveiled the importance of ESG factors in influencing corporate
Advanced International Journal of strategies, policies, and the composition of boards as governing bodies. The
Business, Entrepreneurship and final data findings consist of thirty papers identified through this review. The
SMEs, 5 (18), 185-204. expected validation is comprised of the following three themes: (1) The
significance of CG integration with ESG, (2) Framework for Research on ESG
DOI: 10.35631/AIJBES.518018. and CG, and (3) New research area on CG and ESG. The results highlight the
necessity of incorporating CG on ESG principles as a foundation for a firm's
This work is licensed under CC BY 4.0 sustainability and stakeholder trust. Furthermore, this assessment serves to
identify gaps in knowledge, providing valuable insights for future research and
policy implications.
Copyright © GLOBAL ACADEMIC EXCELLENCE (M) SDN BHD - All rights reserved
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Keywords:
ESG, Board Characteristics, Corporate Governance.
Introduction
In an era marked by heightened awareness of environmental, social, and governance (ESG)
concerns, businesses across the globe find themselves at the crossroads of public expectations,
regulatory pressures, and market dynamics (Brogi et al., 2022; Irawan & Okimoto, 2022). The
fusion of ESG factors with corporate governance (CG) has become a point of interest, as
stakeholders, including investors, consumers, and regulators, demand greater corporate
transparency and responsibility. Thus, ESG disclosure has become the vehicle for a firm to
communicate its dedication to sustainable practices and principles. (Cerciello et al., 2023; Wang
et al., 2022; Ye et al., 2022). Conversely, CG plays a critical role in shaping and enforcing the
strategic decisions and policies that underscore a company's ESG performance. Together, ESG
disclosure and CG form the nexus through which businesses navigate the challenges and
opportunities arising from the rapidly evolving landscape of ethical, social, and environmental
responsibilities (Ahmad et al., 2023; Chebbi & Ammer, 2022; Khan, 2019).
The association between CG and ESG factors has garnered substantial attention in recent
scholarly research. Scholars such as Chebbi & Ammer (2022) and Ahmad et al. (2023) have
highlighted the potential relationship between enhanced CG practices and ESG disclosures,
underscoring the strategic influence of CG, ESG practices, and firm characteristics on financial
performance. Notably, discussions by Uzliawati et al. (2023), Bamahros et al. (2022), and
Adeneye et al. (2023) have highlighted the impact of specific CG components such as board
size, independence, audit committees, and gender diversity on ESG performance and corporate
value. Moreover, establishing ESG committees has significantly bolstered ESG disclosure
within companies (Nicolo et al., 2023). However, while there is a consensus on the pivotal role
of specific governance structures in fostering ESG disclosures and enhancing corporate value,
divergent perspectives persist across geographic regions. Some studies, such as those by Kuzey
et al. (2023) and Rooh et al. (2021), present contrasting views, suggesting that CG might
weaken the relationship between board characteristics and extensive ESG engagement.
Specifically, evidence suggests a negative impact of CG features, particularly within the
banking sector, on ESG performance. Further insights by Mohammad et al. (2023) highlight a
negative correlation between CG and ESG scores in emerging markets, emphasizing the role of
institutional and regulatory frameworks in shaping these intricate relationships.
Thus, this paper aims to review the current literature on CG and ESG factors systematically.
This review offers a perspective on the current state of knowledge and identifies the gaps and
emerging trends that warrant further investigation. This study will help academics, regulators,
investors, and businesses navigate the complex landscape of CG and ESG practices.
Material and Methods
Identification
The systematic review approach comprises three primary phases when selecting suitable papers
for this study. The initial stage involves identifying keywords and exploring associated terms
using resources and prior scholarly investigations. Subsequently, once the pertinent keywords
had been determined, search strings were formulated for the Scopus and Web of Science (WOS)
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DOI 10.35631/AIJBES.518018
databases, as indicated in Table 1. During the initial stage of the systematic review procedure,
261 papers were successfully retrieved from the selected databases.
Table 1
The Search Strings
TITLE-ABS-KEY (“Environmental Social Governance*" OR esg* AND "corporate
governance" AND board) AND (LIMIT-TO (PUBYEAR, 2020 ) OR LIMIT-TO (
SCOPUS PUBYEAR , 2021 ) OR LIMIT-TO ( PUBYEAR , 2022 ) OR LIMIT-TO (
PUBYEAR , 2023 ) ) AND ( LIMIT-TO ( SUBJAREA , "BUSI" ) ) AND ( LIMIT-
TO ( DOCTYPE , "ar" ) ) AND ( LIMIT-TO ( PUBSTAGE , "final" ) ) AND ( LIMIT-
TO ( LANGUAGE , "English" ) ) AND ( LIMIT-TO ( SRCTYPE , "j" ) )
WOS "Environmental Social Governance*" or ESG* AND "corporate governance" AND
board (Topic) and 2023 or 2022 or 2021 or 2020 (Publication Years) and Article
(Document Types) and Management or Business or Business Finance (Web of
Science Categories) and English (Languages)
Screening
During the initial round of screening, it is imperative to exclude duplicated papers. In the initial
stage, 146 papers were excluded from consideration. Subsequently, in the second phase, 115
articles were subjected to a screening process that adhered to the researchers' specific inclusion
and exclusion criteria. The initial criterion for selection was literature in the form of research
articles, as it serves as the primary source of practical information. Additionally, the present
study incorporates the omission of publications such as systematic reviews, meta-analyses,
meta-syntheses, book series, books, chapters, and conference proceedings. Moreover, the
analysis focused solely on scholarly articles in English. It is imperative to acknowledge that the
timeframe selected for the schedule spans four years, specifically from 2020 to 2023. A total of
25 publications were removed based on certain factors.
Eligibility
In the third phase, the eligibility stage, a compilation of 90 articles has been assembled. At this
step, a comprehensive evaluation was conducted on the titles and main content of all
publications to ensure that they met the inclusion criteria and aligned with the research
objectives of the present study. Hence, 60 papers were excluded from consideration due to their
lack of adherence to the criteria. A total of 30 articles are now accessible for examination, as
indicated in Table 2.
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Table 2
The Selection Criterion Is Searching
Criterion Inclusion Exclusion
Language English Non-English
Timeline 2021 – 2023 < 2021
Literature type Journal (Article) Conference, Book,
Review
Publication Stage Final In Press
Subject Area Business, Management Besides Business,
and Accounting Management and
Accounting
Data Abstraction and Analysis

This study conducted an integrative analysis as one of the assessment methodologies employed
to evaluate and synthesise several research designs, including qualitative, quantitative, and
mixed approaches. Scholarly investigation focused on the formulation of suitable subjects and
subcategories. The initial stage in the progression of the topic involved gathering data. The
writers have conducted a thorough examination of a collection of 30 publications to identify
any statements or material that pertain to the inquiries raised in this present study. The writers
and experts examine the selected ESG and CG studies in the subsequent phase, subsequently
identifying and establishing coherent groupings. The study identified three primary themes that
were evident in the approach: (1) The significance of CG integration with ESG, (2) Framework
for Research on ESG and CG, and (3) New research area on CG and ESG. The writers
summarised each explored theme, encompassing related themes, thoughts, or ideas. In the
context of this research, the primary author collaborated with additional co-authors to identify
and construct thematic categories derived from the obtained results. During the data analysis
process, a log was diligently maintained to record all pertinent analyses that were significant to
the interpretation of the data.
The authors additionally conducted a comparison of the findings to address any inconsistencies
that may have arisen during the process of theme development. It should be noted that in the
event of any contradictions regarding the themes, the authors engaged in a discussion to address
them. Ultimately, the established themes underwent adjustments to maintain their coherence.
To ascertain the credibility of the concerns, the tests were conducted by two professionals, one
possessing expertise in the field of ESG and the other specialising in corporate governance. The
expert review process ensured each sub-theme's clarity, significance, and sufficiency by
proving domain validity. The author has implemented modifications following expert feedback
and comments.
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Result and Finding
This section presents the study results based on three themes identified (Theme 1: The significance of CG integration with ESG, Theme 2: Framework for
Research on ESG and CG, Theme 3: New research area on CG and ESG).
Theme 1: The Significance of CG Integration with ESG

Authors Title Year Journal Methodology Findings
(Albitar et Do corporate 2023 International The study utilized an automatic content Independent directors on the board enhance
al., 2023) governance Journal of analysis method, acquiring data from comprehensive CSR reports and increase trust.
mechanisms and Finance & Bloomberg and corporate websites and Besides, higher ESG disclosure ratings and
ESG disclosure Economics analyzing firm-fixed and random effects impressive CSR narratives boost a company's
drive CSR narrative regressions on FTSE 100 businesses from reputation among socially conscious investors.
tones? 2008 to 2017. Lastly, gender diversity improves inclusivity,
enhancing governance, sustainability, and CSR
programs.
(Previtali & Corporate 2023 Corporate The study analyzed 140 CSR reports from Soft regulation of board composition,
Cerchiello, governance and Governance Italian companies and 50 from other incorporating qualitative and quantitative
2023) anti-corruption entities, examining their implementation of standards, can lead to beneficial outcomes, with a
disclosure Global Reporting Initiative standard positive correlation between anti-corruption
number 205. measures disclosure, board size, and female
board members.
(Maroun, Corporate 2022 Corporate A quantitative method was employed to Audit and risk committees influence ESG
2022) governance and the Governance- collect South Africa's integrated reporting assurance, with internal audit functions not
use of external An and CG practices. influencing the assurance choice. These
assurance for International committees seek high levels of assurance,
integrated reports Review emphasizing the importance of ESG assurance in
corporate governance. The research suggests that
organizations should engage external auditors
and conduct rigorous testing to improve the
credibility of their corporate reports.
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(Tran, 2023) Impact Factors on 2023 Corporate A survey distributed 500 questionnaires, Larger corporations are more likely to adopt CSR
The Adoption of Governance receiving 335 valid responses at a 67% initiatives. Moreover, stakeholder-focused
Corporate Social and response rate using a Likert scale of five governance frameworks are crucial, and diverse
Responsibility: Organizational points. ownership structures contribute to CSR
Empirical Evidence Behavior acceptance. Further, sectors show a greater
from an Emerging Review tendency for innovation, and ESG principles
Market strengthen CSR practices.
(Nicolo et Worldwide evidence 2023 Utility Policy The dataset, spanning 1,750 observations CG significantly impacts ESG disclosure
al., 2023) of corporate from 2011 to 2019, includes 265 utility practices in utility companies. This happens
governance entities across 35 countries, collected from through board independence and a dedicated CSR
influence on ESG the Eikon Refinitiv database, and analysed committee. Besides, larger boards also correlate
disclosure in the using panel data regression techniques. with higher levels of disclosure. Lastly, to
utilities sector improve ESG disclosure, companies should adopt
a comprehensive approach, foster board
independence, form CSR committees, and
exercise prudent board size judgment.
(Keddie & Are ESG 2023 Sustainability Researchers use AI to analyze S&P 500 ESG incentives in executive compensation
Magnan, performance-based Accounting companies' ESG incentive implementation contracts reduce annual surplus cash awards,
2023) incentives a panacea Management using 2015 data and endogenous treatment demonstrating their effectiveness in CG.
or a smokescreen for and Policy regression. The model is then trained and However, influential ESG-incentive management
excess Journal applied to 2016-2020 surrogate statements. teams still receive excessive bonuses, particularly
compensation? in environmentally sensitive sectors, CSR
committees, or institutional shareholders.
Impact of 2022 CSR and The dataset includes publicly traded entities Higher dividend distribution and superior ESG
(Ellili, 2022) environmental, Environmental in the UAE financial markets between 2010 practices by corporations, with board
social and management and 2020, gathered through Bloomberg independence influencing ESG disclosure and
governance data acquisition and panel data regressions. foreign ownership moderating the relationship
disclosure on positively.
dividend policy:
What is the role of
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corporate
governance?
Evidence from an
emerging market
(Bamahros et Corporate 2022 Sustainability This research analyzed Saudi corporations The presence of a royal family member on the
al., 2022) governance listed on Bloomberg's ESG database from board and external members on the audit
mechanisms and 2010 to 2019, using regression using committee is linked to higher levels of ESG
ESG reporting: Ordinary Least Squares (OLS) for data disclosure.
Evidence from the collection.
Saudi Stock Market
(Campanella The role of 2021 CSR and The dataset, consisting of 540 Forbes Stakeholder engagement is essential in advancing
et al., 2021) corporate Environmental Global 2000 companies from 2014 to 2017, corporate environmental policy and sustainable
governance in management was analyzed using a Poisson regression development, with governance factors
environmental model and a Generalised Estimating significantly impacting environmental policy
policy disclosure Equations method for longitudinal count disclosure, except board size.
and sustainable data.
development.
Generalized
estimating equations
in longitudinal count
data analysis.
(Al Amosh Corporate 2021 SN Business The study analyzed data from 51 industrial There is a lack of comprehensive ESG disclosure
& Khatib, governance and & Economics companies listed in Jordan from 2012 to but an upward trend due to stakeholder pressures.
2021) voluntary disclosure 2019, focusing on 63 Amman Stock Furthermore, board size and meeting frequency
of sustainability Exchange entities. The content analysis significantly impact ESG performance. However,
performance: The method was used to analyze the data stored audit committee composition, non-executive
case of Jordan in a panel data format. directors, board compensation, and audit
committee type did not significantly impact ESG
disclosure.
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Table 5
Theme 2: Framework for Research on ESG and CG
Authors Title Year Journal Methodology Independent Dependent Intervening
Variables Variables Variables
Social 2023 Journal of Risk Empirical analysis of 2494 European in Board’s attributes Social -
(Monteiro et Performance and Financial 2021 public listed companies used (Diversity, performance
al., 2023) Disclosed by Management regression analysis to determine the Inclusion, People
European likelihood of correlation among Development and
Companies: The examined variables. Controversies)
Role of the Board
Attributes and the
Country’s Legal
System
Longer board 2023 Corporate This study utilized data from the Board tenure and Environmental -
(Paolone et tenure and audit Social Refinitiv Eikon database, focusing on audit committee performance
al., 2023) committee tenure. Responsibility EU-listed corporations relevant to tenure
How do they and original member countries from 2018 to
impact Environmental 2020.
environmental Management
performance? A
European study
Do emerging and 2022 Research in The study utilized a dataset of 69,461 Behaviour of the Sustainable -
(Lozano & developed International firm-year observations from 2012-2018, board of performance
Martínez- countries differ in Business and analyzing both developed and emerging directors,
Ferrero, terms of Finance countries using a two-stage 2SLS model. ownership and
2022) sustainable institutional
performance? pressure
Analysis of board,
ownership and
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country-level
factors
Product market 2022 Journal of The study utilizes a global ESG dataset Board gender Corporate Product
(Kamarudin competition, Financial from Thomson Reuters, containing diversity sustainability market
et al., 2022) board gender Reporting and 23,137 firm-year observations from 37 performance competition
diversity and Accounting countries, to examine hypotheses ,
corporate through regression analyses.
sustainability
performance:
international
evidence
(Fuadah et The Ownership 2022 Economies The study examines Indonesia Stock Ownership ESG The Audit
al., 2022) Structure, and the Exchange-listed companies from 2016 structure Disclosure, Committee
Environmental, to 2020, using 700 observations and 140 Firm Value
Social, and companies examined, utilizing and Firm
Governance secondary data from the Indonesian Performance
(ESG) Disclosure, capital market directory and annual,
Firm Value and financial, and sustainability reports.
Firm
Performance: The
Audit Committee
as Moderating
Variable
Breaking the glass 2023 International The study investigates 13 European non- Board gender ESG
(Issa & ceiling for a Journal of financial enterprises from 2004-2021 diversity controversies
Hanaysha, sustainable future: Accounting & using aggregated ordinary least squares
2023) the power of Information regression and supplementary
women on Management methodologies like alternative
corporate boards measurement, subsample analysis, and
two-stage least squares.
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in reducing ESG
controversies
(Arif et al., The impact of 2021 The The study analyzes Bloomberg ESG Audit Committee ESG
2020) audit committee International disclosure scores and company audit (AC) Activism disclosure
attributes on the Journal of committee attributes using Petersen's and
quality and Business in (2009) methodology, constructing a two- independence
quantity of Society dimensional cluster and implementing a
environmental, two-stage least squares method to
social and mitigate endogeneity concerns.
governance (ESG)
disclosures
(Elmghaame ESG disclosure 2022 International This research uses quantile regression ESG disclosure Financial Board
z et al., and financial Journal of analysis on a panel dataset of 500 performance committee
2023) performance of Finance & multinational corporations in 40 index
multinational Economics countries from 2009-2019, spanning
enterprises: The 5500 firm-year observations.
moderating effect
of board standing
committees
Board 2022 Sustainability The study examines 439 public listed Board sustainability
(Disli et al., characteristics and Accounting, non-financial corporations in 20 characteristics performance
2022) sustainability Management emergent economies, using ESG (Board (ESG)
performance: and Policy performance scores and board attribute independence,
Empirical Journal, variables from Refinitiv and Thomson gender diversity,
evidence from Reuters Eikon databases. board size and
emerging markets board activity)
(Bamahros CG Mechanisms 2022 Sustainability This study uses Bloomberg database Royal Family ESG Reporting
et al., 2022) and ESG ESG data on Saudi companies from Member and
Reporting: 2010-2019, focusing on 34 brands. The
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Evidence from the dataset includes 206 observations by Audit Committee
Saudi Stock company year, encompassing 206 years. External Member
Market
Table 6
Theme 3: New research area on CG and ESG
Authors Title Year Journal Methodology New Research Area Findings
Sustainable 2023 Technological Integrating Industry 4.0 Industry 4.0 and CE The integration of Circular Economy and
(Alkaraan et strategic Forecasting technologies and Circular (circular economy) Industry 4.0 significantly impacts
al., 2023) investment and Social Economy techniques technique organizational financial performance,
decision-making Change significantly impacts the sustainable supply chain and inventory
practices in UK company's financial management practices, though the degree of
companies: The performance and Sustainable synergy varies across industry sectors.
influence of Supply Chain and Inventory
governance Management Practices,
mechanisms on varying across different
synergy between sectors.
industry 4.0 and
circular economy
Carbon emissions, 2023 Business The research paper uses a Carbon emissions Staggered boards significantly decrease
(Tanthanong corporate Strategy and novel dataset, machine and environmental emission performance.
sakkun et governance, and the learning algorithms, and performance.
al., 2023) staggered boards Environment textual analysis to detect a
staggered board, incorporating
firm fixed effects to account
for unobserved heterogeneity.
The integration of 2022 International From 2015 to 2019, a Integrated Financial institutions increasingly recognize
(Dicuonzo et sustainability in Journal of comprehensive analysis of sustainability and the importance of sustainability in corporate
al., 2022) CG systems: An European banks using content CG systems.
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innovative Disclosure and analysis methodology governance, but there is a lack of uniformity
framework applied Governance developed a new governance and significant improvement opportunities.
to the European score, the "Bank's Governance
systematically ESG Integrated Index."
important banks
The Impact of 2022 International The panel data focuses on Digital Positive correlation between Tobin-Q and
(Grishunin Sustainability Journal of publicly traded transformation ESG disclosure scores in the
et al., 2022) Disclosures on Technology telecommunications firms in strategies telecommunications industry, with CG
Value of the U.S. from 2011 to 2021. significantly impacting ESG pillars. In
Companies addition, CEO duality negatively impacts
Following Digital value, while independent directors, CSR
Transformation committees, and gender diversity positively
Strategies influence companies.
Nomination 2023 Corporate This study examines a dataset The nomination Financial institutions can mitigate ESG
(Iannuzzi et committee Governance: of 30 globally significant committee's disputes by appointing qualified individuals
al., 2023) characteristics and The institutions from 2015-2021, susceptibility to ESG to their Nomination Committees, focusing
exposure to International using clustered disputes on sustainability committee members and
environmental, Journal of heteroskedastic standard errors foreign directors. Furthermore, a younger
social and Business in and fixed effects panel data demographic and directors dedicated to ESG
governance (ESG) Society models to account for serial principles can reduce disputes.
controversies: correlation.
evidence from
European global
systemically
important banks
Board composition 2023 Journal of The analysis, conducted Disclosure strategies Board composition and textual attributes
(Beretta et and textual Cleaner between 2017 and 2020, of ESG significantly influence the conciseness,
al., 2023) attributes of non- Production involved content analysis to comprehensiveness, favorable tone, and
financial disclosure assess disclosures' textual legibility of Non-Financial Disclosures.
in the banking attributes and a multivariate
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sector: Evidence regression model using panel
from the Italian data.
setting after
directive
2014/95/EU
Renewable 2023 Journal of This research uses panel data Renewable Board renewal mechanisms enhanced
(Dyck et al., Governance: Good Accounting and a fixed-effects approach to Governance and environmental performance, particularly in
2023) for the Research analyze board renewal ESG environments with strong and highly
Environment? mechanisms in Canada and motivated institutional investors.
France, incorporating quasi-
exogenous shocks from 3,293
companies across 41 nations.
(Zheng et Can green 2022 Sustainability The study uses a panel dataset Green Innovation Green innovation significantly improves
al., 2022) innovation affect of 3100 observations from and ESG ESG scores for publicly traded GEM
ESG ratings and 2014 to 2019 in China's companies. Both green innovation and ESG
financial Growth Enterprise Market performance positively impact financial
performance? (GEM). It employs a causal performance. However, regional innovation
evidence from steps approach, dynamic panel capabilities and political connections
Chinese GEM- framework, and embedded and negatively impact green innovation's
listed companies ESG factor-integrated positive impact, with corporate political
regression models. connections being more pronounced.
(Schiemann ESG Controversies, 2022 International The dataset, spanning nine ESG controversies Companies with significant ESG
& ESG Disclosure Review of years from 2008 to 2017, and analyst forecast controversies are more likely to make
Tietmeyer, and Analyst Financial includes 1,614 companies and accuracy. analyst forecast errors, with ESG disclosure
2022) Forecast Accuracy Analysis 8,369 firm-year observations as a moderating factor and social
across 51 countries, and it uses controversies as the primary influencing
panel regression methods. factors.
(Wong & Stock market 2022 The British This research examines Corporate reputation Corporate reputation risks significantly
Zhang, reactions to adverse Accounting publicly traded corporations in risks arising from impact smaller, less liquid companies,
2022) Review the United States using panel ESG concerns. especially those not in the S&P500 index.
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ESG disclosure via data analysis from January Surprisingly, negative ESG media coverage
media channels 2007 to December 2018. does not significantly affect alcohol,
tobacco, and gaming companies, but steel
manufacturing, confectionery, insurance,
and banking sectors are most vulnerable.
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Discussion and Conclusion
The findings highlight the significant integration between CG and ESG. Certain governance
structures and practices significantly impact ESG disclosure, ESG initiatives, and overall
corporate reputation. Among the crucial things highlighted, independent directors improve
ESG reports by emphasizing the value of multiple perspectives in developing sustainability
strategies. Besides, higher ESG disclosure scores help a company's reputation, especially
among socially conscious investors. Gender diversity and governance are associated with
increased inclusivity, which benefits governance, sustainability, and ESG programs. Board
composition and remuneration committees can have positive consequences, highlighting the
importance of adaptable governance structures. Additionally, audit and risk committees are
critical to the credibility of business reporting. Moreover, larger firms are more likely to
implement ESG disclosure strategies, highlighting the significance of stakeholder-focused
governance systems. Lastly, the engagement of stakeholders is critical for developing ESG
policy and sustainable development.
Furthermore, different frameworks demonstrate a complicated association of CG and ESG with

board qualities, performance measurements, and other intervening variables. Board
characteristics such as diversity, inclusiveness, people development, and resolving disputes
impact social, environmental, sustainable, and financial success. These factors are also
influenced by board duration, audit committee tenure, behaviour, ownership structure, and
institutional pressure. Intervening variables such as audit committee gender diversity, activism,
and independence also impact this relationship. Lastly, a holistic approach to governance,
including good controversies management is critical for improving sustainability and financial
performance.
Lastly, when the study probes into new areas of research on ESG and CG, there are various
aspects of business and sustainability. For instance, industry 4.0, digital transformation
strategies, renewable governance, green innovation, and the impact of negative media coverage
on corporate reputation. This is interesting as Industry 4.0 substantially impacts financial
performance, sustainable supply chain, and inventory management practices. Furthermore,
staggered boards significantly reduce emission performance, demonstrating the impact of
governance structures on environmental outcomes. In addition, mitigating ESG issues entails
qualified appointments to Nomination Committees, emphasizing sustainability committee
members, international directors, and younger demography and directors committed to ESG
principles. Besides, renewable governance and environmental sustainability are highly
associated, particularly in situations with strong institutional support and committed investors.
Green innovation also benefits ESG scores for publicly listed companies, highlighting the
commercial rationale for sustainability. Finally, analyst forecast accuracy and ESG
controversies are highlighted, with societal controversies functioning as a moderating element.
Acknowledgment
I want to express sincere appreciation to all of the authors identified, as well as those who
contributed directly or indirectly to the successful publishing of this paper.
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ESG AND CORPORATE GOVERNANCE: A SYSTEMATIC REVIEW

Noor Hidayah Ab Aziz Ahmed Razman Abdul Latiff

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Mohammad Noor Hisham Osman Sajead Al-Shdaifat

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ADVANCED INTERNATIONAL JOURNAL OF

ESG AND CORPORATE GOVERNANCE: A SYSTEMATIC

ESG, Board Characteristics, Corporate Governance.

Material and Methods

Data Abstraction and Analysis

Theme 1: The Significance of CG Integration with ESG

Furthermore, different frameworks demonstrate a complicated association of CG and ESG with

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