Understanding Environmental, Social and Governance (ESG) Implementation in Corporate Strategy: A Systematic Literature Review and Future Research Agenda

Environmental, Social and Governance (ESG) practices have become an integral component of corporate strategy, reflecting increasing stakeholder demands for sustainable and responsible business conduct. Despite the rapid growth of ESG-related research, existing studies remain fragmented across industries, geographical contexts and methodological approaches. This study aims to systematically review the literature on ESG implementation in corporate strategy and identify its key determinants, outcomes and future research directions. A Systematic Literature Review (SLR) was conducted following the PRISMA 2020 framework. Articles were retrieved from Scopus, Web of Science and Google Scholar databases using predefined search criteria. After a rigorous screening and eligibility process, 50 peer-reviewed articles published between 2021 and 2025 were selected and analyzed through thematic synthesis. The findings indicate that ESG implementation has evolved from a compliance-oriented practice into a strategic organizational capability that enhances firm performance, innovation, stakeholder engagement and long-term competitiveness. Corporate governance mechanisms, board characteristics, institutional pressures, regulatory environments and digital transformation were identified as key drivers of effective ESG implementation. The review also reveals significant differences in ESG adoption between developed and emerging economies, highlighting the importance of contextual and institutional factors. This study contributes to the ESG literature by providing a comprehensive synthesis of recent research, identifying major knowledge gaps and proposing a future research agenda. The findings offer valuable insights for managers, policymakers and investors seeking to strengthen ESG integration and support sustainable corporate development.