IDEAS home Printed from https://ideas.repec.org/a/gam/jrisks/v13y2025i8p154-d1725587.html
   My bibliography  Save this article

The Implementation of ESG Indicators in the Balanced Scorecard—Case Study of LGOs

Author

Listed:
  • Stavros Garefalakis

    (Department of Management Science and Technology, University of Western Macedonia, GR50100 Kozani, Greece)

  • Erasmia Angelaki

    (Department of Business Administration and Tourism, Hellenic Mediterranean University, GR71410 Iraklio, Greece)

  • Kostantinos Spinthiropoulos

    (Department of Management Science and Technology, University of Western Macedonia, GR50100 Kozani, Greece)

  • George Tsamis

    (Department of Electrical and Computer Engineering, Hellenic Mediterranean University (HMU), GR71410 Heraklion, Greece)

  • Alexandros Garefalakis

    (Department of Business Administration and Tourism, Hellenic Mediterranean University, GR71410 Iraklio, Greece)

Abstract

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.

Suggested Citation

  • Stavros Garefalakis & Erasmia Angelaki & Kostantinos Spinthiropoulos & George Tsamis & Alexandros Garefalakis, 2025. "The Implementation of ESG Indicators in the Balanced Scorecard—Case Study of LGOs," Risks, MDPI, vol. 13(8), pages 1-35, August.
    • Handle: RePEc:gam:jrisks:v:13:y:2025:i:8:p:154-:d:1725587
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-9091/13/8/154/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-9091/13/8/154/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rocío Redondo Alamillos & Frédéric de Mariz, 2022. "How Can European Regulation on ESG Impact Business Globally?," JRFM, MDPI, vol. 15(7), pages 1-19, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xueying Yuan & Lixia Shang & Jinhua Xu, 2024. "Green Financial Policy, Resource Allocation and Corporate Environmental Responsibility," Sustainability, MDPI, vol. 16(15), pages 1-29, July.
    2. Edna Aparecida Greggio Possebon & Felippe Aparecido Cippiciani & José Roberto Ferreira Savoia & Frédéric de Mariz, 2024. "ESG Scores and Performance in Brazilian Public Companies," Sustainability, MDPI, vol. 16(13), pages 1-18, July.
    3. Maria Mitroulia & Evangelos Chytis & Thomas Kitsantas & Michalis Skordoulis & Petros Kalantonis, 2025. "ESG Strategy and Tax Avoidance: Insights from a Meta-Regression Analysis," JRFM, MDPI, vol. 18(9), pages 1-34, September.
    4. Monia Magnani & Massimo Guidolin & Ian Berk, 2024. "Strong vs. stable: the impact of ESG ratings momentum and their volatility on the cost of equity capital," Journal of Asset Management, Palgrave Macmillan, vol. 25(7), pages 666-699, December.
    5. Attila Jámbor & Anett Zanócz, 2023. "The Diversity of Environmental, Social, and Governance Aspects in Sustainability: A Systematic Literature Review," Sustainability, MDPI, vol. 15(18), pages 1-15, September.
    6. Byung-Cheol Yoo, 2025. "Exploring Stakeholder and Organizational Influences on ESG Management in the Logistics Sector," Sustainability, MDPI, vol. 17(9), pages 1-24, May.
    7. Manpreet Kaur Makkar & Basit Ali Bhat & Mohsin Showkat & Fatma Mabrouk, 2025. "The ESG Paradox: Risk, Sustainability, and the Smokescreen Effect," Sustainability, MDPI, vol. 17(16), pages 1-17, August.
    8. Pieter Bosmans & Frederic de Mariz, 2023. "The Blue Bond Market: A Catalyst for Ocean and Water Financing," JRFM, MDPI, vol. 16(3), pages 1-48, March.
    9. Ion FRECAUTAN & Andreea NITA (DANILA), 2022. "Who Is Going To Win: The Eu Esg Regulation Or The Rest Of The World? €“ A Critical Review," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 2(2), pages 109-120, December.
    10. Caterina Farao & Chiara Bernuzzi & Chiara Ronchetti, 2023. "The Crucial Role of Green Soft Skills and Leadership for Sustainability: A Case Study of an Italian Small and Medium Enterprise Operating in the Food Sector," Sustainability, MDPI, vol. 15(22), pages 1-25, November.
    11. Chun-Hung Cheng & Bau-Jen Tang & Yea-Rong Cheng, 2024. "Strategies and Tools for Small- and Medium-Sized Enterprises (SMEs) to Move toward Green Operations: The Case of the Taiwan Metal Industry," Sustainability, MDPI, vol. 16(11), pages 1-17, May.
    12. Tang, Chun & Wu, Yizhong & Liu, Xiaoxing, 2025. "Does China's national carbon market play a role? Evidence from corporate ESG performance," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 1053-1064.
    13. Lauren Olsen & Frederic de Mariz, 2025. "Attracting More Capital for Biodiversity Finance: The Case of Debt-for-Nature Instruments," Commodities, MDPI, vol. 4(2), pages 1-20, May.
    14. Shuqi Lou & Xiaoyue You & Tao Xu, 2024. "Sustainable Supplier Evaluation: From Current Criteria to Reconstruction Based on ESG Requirements," Sustainability, MDPI, vol. 16(2), pages 1-23, January.
    15. Ann Susan Thomas & Ambili Jayachandran & Ajithakumari Vijayappan Nair Biju, 2024. "Strategic mapping of the environmental social governance landscape in finance – A bibliometric exploration through concepts and themes," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4428-4453, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jrisks:v:13:y:2025:i:8:p:154-:d:1725587. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.