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Driving sustainability: ESG and business strategy in global autonomous driving industry

Author

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  • Lee, Feng-Ping
  • Kiong Ting, Irene Wei
  • Lu, Wen-Min

Abstract

This research investigates the influence of environmental, social and governance (ESG) factors on the sustainable performance of global autonomous driving firms, specifically examining the moderating effect of business strategy. Drawing on data from 2017 to 2024 for 34 global enterprises—collectively representing approximately 85 % of total market capitalisation—this study assesses operational and market efficiency via a data envelopment analysis framework. These assessments are further refined through nonparametric tests and truncated regression analyses. Findings demonstrate that social initiatives enhance operational efficiency, whereas environmental and governance initiatives primarily strengthen market performance. Furthermore, business strategy moderates these relationships; strategic misalignment, such as rigid governance structures within prospector firms, diminishes ESG effectiveness. Regional analysis reveals distinct patterns: North American firms excel in social and environmental metrics; European firms lead in governance and operational efficiency; and Asian firms, whilst driven by technology and production, exhibit lower marketability and social responsibility scores. Beyond firm-specific metrics, these results underscore the broader societal importance of autonomous driving technologies. Integrating ESG frameworks remains essential to guiding innovation that is ethical, environmentally sustainable and socially responsible. Ultimately, this study offers actionable insights for policymakers, industry leaders and investors, highlighting the importance of aligning ESG practices with strategic priorities to foster sustainable technological development and ensure that autonomous driving yields public and economic benefits.

Suggested Citation

  • Lee, Feng-Ping & Kiong Ting, Irene Wei & Lu, Wen-Min, 2026. "Driving sustainability: ESG and business strategy in global autonomous driving industry," Technology in Society, Elsevier, vol. 85(C).
    • Handle: RePEc:eee:teinso:v:85:y:2026:i:c:s0160791x2600014x
    DOI: 10.1016/j.techsoc.2026.103225
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    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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