IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i8p6685-d1124001.html
   My bibliography  Save this article

The Impact of ESG Practices in Industry with a Focus on Carbon Emissions: Insights and Future Perspectives

Author

Listed:
  • Alessio Baratta

    (Department of Mechanical, Energy and Management Engineering, University of Calabria, 87036 Rende, Italy)

  • Antonio Cimino

    (Department of Innovation Engineering, University of Salento, 73100 Lecce, Italy)

  • Francesco Longo

    (Department of Mechanical, Energy and Management Engineering, University of Calabria, 87036 Rende, Italy)

  • Vittorio Solina

    (Department of Mechanical, Energy and Management Engineering, University of Calabria, 87036 Rende, Italy)

  • Saverino Verteramo

    (Department of Mechanical, Energy and Management Engineering, University of Calabria, 87036 Rende, Italy)

Abstract

In recent years, interest in economic, environmental and social sustainability has increased significantly. Companies are gradually adopting behaviors aimed at achieving the Sustainable Development Goals, which represent a crucial aspect of the 2030 Agenda. In practice, they are currently incorporating organizational strategies that jointly consider environmental, social and corporate governance (ESG), with the aim of generating value for all stakeholders. This paper aims to review, through a recognized seven-step procedure, the current literature on the impact that ESG practices have in industry, with a focus on the reduction of carbon emissions. The results are extremely useful for both researchers and entrepreneurs. The bibliometric analysis shows that interest in the ESG paradigm has grown considerably in the last three years. Furthermore, through the analysis of 13 key documents, it emerges that (i) the European community is pushing significantly towards the adoption of ESG practices through new regulations, (ii) the link between industrial operations and carbon emissions can no longer be neglected within the factory of the future, and (iii) significant efforts are still needed to standardize, in terms of variables and KPIs, the adoption of ESG-centric strategies.

Suggested Citation

  • Alessio Baratta & Antonio Cimino & Francesco Longo & Vittorio Solina & Saverino Verteramo, 2023. "The Impact of ESG Practices in Industry with a Focus on Carbon Emissions: Insights and Future Perspectives," Sustainability, MDPI, vol. 15(8), pages 1-20, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:8:p:6685-:d:1124001
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/8/6685/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/8/6685/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Patricia Kanashiro, 2020. "Can environmental governance lower toxic emissions? A panel study of U.S. high‐polluting industries," Business Strategy and the Environment, Wiley Blackwell, vol. 29(4), pages 1634-1646, May.
    2. Chaomei Chen, 2006. "CiteSpace II: Detecting and visualizing emerging trends and transient patterns in scientific literature," Journal of the American Society for Information Science and Technology, Association for Information Science & Technology, vol. 57(3), pages 359-377, February.
    3. Azar, José & Duro, Miguel & Kadach, Igor & Ormazabal, Gaizka, 2021. "The Big Three and corporate carbon emissions around the world," Journal of Financial Economics, Elsevier, vol. 142(2), pages 674-696.
    4. Khanh Hoang, 2022. "Silent but deadly: Political corruption and voluntary ESG disclosure in the United States," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 2775-2793, October.
    5. Thi‐Hong‐Van Hoang & Wojciech Przychodzen & Justyna Przychodzen & Elysé A. Segbotangni, 2020. "Does it pay to be green? A disaggregated analysis of U.S. firms with green patents," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1331-1361, March.
    6. Paramati, Sudharshan Reddy & Alam, Md Samsul & Apergis, Nicholas, 2018. "The role of stock markets on environmental degradation: A comparative study of developed and emerging market economies across the globe," Emerging Markets Review, Elsevier, vol. 35(C), pages 19-30.
    7. Magali A. Delmas & Michael W. Toffel, 2008. "Organizational responses to environmental demands: opening the black box," Strategic Management Journal, Wiley Blackwell, vol. 29(10), pages 1027-1055, October.
    8. Zhang, Dongyang & Lucey, Brian M., 2022. "Sustainable behaviors and firm performance: The role of financial constraints’ alleviation," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 220-233.
    9. Nees Jan Eck & Ludo Waltman, 2010. "Software survey: VOSviewer, a computer program for bibliometric mapping," Scientometrics, Springer;Akadémiai Kiadó, vol. 84(2), pages 523-538, August.
    10. Sofia Karagiannopoulou & Grigoris Giannarakis & Emilios Galariotis & Constantin Zopounidis & Nikolaos Sariannidis, 2022. "The Impact of Dow Jones Sustainability Index, Exchange Rate and Consumer Sentiment Index on Carbon Emissions," Sustainability, MDPI, vol. 14(19), pages 1-19, September.
    11. Catalin Popescu & Eglantina Hysa & Alba Kruja & Egla Mansi, 2022. "Social Innovation, Circularity and Energy Transition for Environmental, Social and Governance (ESG) Practices—A Comprehensive Review," Energies, MDPI, vol. 15(23), pages 1-28, November.
    12. Fahimnia, Behnam & Sarkis, Joseph & Davarzani, Hoda, 2015. "Green supply chain management: A review and bibliometric analysis," International Journal of Production Economics, Elsevier, vol. 162(C), pages 101-114.
    13. Danish, & Baloch, Muhammad Awais & Wang, Bo, 2019. "Analyzing the role of governance in CO2 emissions mitigation: The BRICS experience," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 119-125.
    14. Sher Jahan Khan & Amandeep Dhir & Vinit Parida & Armando Papa, 2021. "Past, present, and future of green product innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4081-4106, December.
    15. Morgan X. Yang & Ji Li & Irina Y. Yu & Kevin J. Zeng & Jian‐Min (James) Sun, 2019. "Environmentally sustainable or economically sustainable? The effect of Chinese manufacturing firms' corporate sustainable strategy on their green performances," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 989-997, September.
    16. Thi Hong Van Hoang & Justyna Przychodzen & Wojciech Przychodzen & Elysé Segbotangni, 2020. "Does it pay to be green? A disaggregated analysis of US firms with green patents," Post-Print hal-02518497, HAL.
    17. Haque, Faizul, 2017. "The effects of board characteristics and sustainable compensation policy on carbon performance of UK firms," The British Accounting Review, Elsevier, vol. 49(3), pages 347-364.
    18. Niranjan Chipalkatti & Quan Vu Le & Meenakshi Rishi, 2021. "Sustainability and Society: Do Environmental, Social, and Governance Factors Matter for Foreign Direct Investment?," Energies, MDPI, vol. 14(19), pages 1-18, September.
    19. Dragisa Stanujkic & Gabrijela Popovic & Edmundas Kazimieras Zavadskas & Darjan Karabasevic & Arune Binkyte-Veliene, 2020. "Assessment of Progress towards Achieving Sustainable Development Goals of the “Agenda 2030” by Using the CoCoSo and the Shannon Entropy Methods: The Case of the EU Countries," Sustainability, MDPI, vol. 12(14), pages 1-19, July.
    20. Michael Cappucci, 2018. "The ESG Integration Paradox," Journal of Applied Corporate Finance, Morgan Stanley, vol. 30(2), pages 22-28, June.
    21. Zhang, Yue-Jun & Peng, Yu-Lu & Ma, Chao-Qun & Shen, Bo, 2017. "Can environmental innovation facilitate carbon emissions reduction? Evidence from China," Energy Policy, Elsevier, vol. 100(C), pages 18-28.
    22. Deepa Mishra & Angappa Gunasekaran & Thanos Papadopoulos & Stephen J. Childe, 2018. "Big Data and supply chain management: a review and bibliometric analysis," Annals of Operations Research, Springer, vol. 270(1), pages 313-336, November.
    23. Robin van Emous & Rytis Krušinskas & Wim Westerman, 2021. "Carbon Emissions Reduction and Corporate Financial Performance: The Influence of Country-Level Characteristics," Energies, MDPI, vol. 14(19), pages 1-19, September.
    24. Alaa Aldowaish & Jiro Kokuryo & Othman Almazyad & Hoe Chin Goi, 2022. "Environmental, Social, and Governance Integration into the Business Model: Literature Review and Research Agenda," Sustainability, MDPI, vol. 14(5), pages 1-20, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Costantiello, Alberto & Leogrande, Angelo, 2023. "The Determinants of CO2 Emissions in the Context of ESG Models at World Level," MPRA Paper 117110, University Library of Munich, Germany.
    2. Yadu Zhang & Yiteng Zhang & Zuoren Sun, 2023. "The Impact of Carbon Emission Trading Policy on Enterprise ESG Performance: Evidence from China," Sustainability, MDPI, vol. 15(10), pages 1-27, May.
    3. Hea Young Lim & Ki Han Kwon, 2023. "Sustainable Assessment of the Environmental Activities of Major Cosmetics and Personal Care Companies," Sustainability, MDPI, vol. 15(18), pages 1-20, September.
    4. Jeongmin Lee & Jinwoo Lee & Changhee Lee & Yulseong Kim, 2023. "Identifying ESG Trends of International Container Shipping Companies Using Semantic Network Analysis and Multiple Case Theory," Sustainability, MDPI, vol. 15(12), pages 1-20, June.

    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. Shashi & Piera Centobelli & Roberto Cerchione & Amit Mittal, 2021. "Managing sustainability in luxury industry to pursue circular economy strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 432-462, January.
    2. Cheng, Louis T.W. & Shen, Jianfu & Wojewodzki, Michal, 2023. "A cross-country analysis of corporate carbon performance: An international investment perspective," Research in International Business and Finance, Elsevier, vol. 64(C).
    3. Farheen Naz & Rohit Agrawal & Anil Kumar & Angappa Gunasekaran & Abhijit Majumdar & Sunil Luthra, 2022. "Reviewing the applications of artificial intelligence in sustainable supply chains: Exploring research propositions for future directions," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2400-2423, July.
    4. Patel, Ritesh & Goodell, John W. & Oriani, Marco Ercole & Paltrinieri, Andrea & Yarovaya, Larisa, 2022. "A bibliometric review of financial market integration literature," International Review of Financial Analysis, Elsevier, vol. 80(C).
    5. Fuzhen Liu & Kee-hung Lai & Wei Cai, 2021. "Responsible Production for Sustainability: Concept Analysis and Bibliometric Review," Sustainability, MDPI, vol. 13(3), pages 1-27, January.
    6. Goodell, John W. & Oriani, Marco Ercole & Paltrinieri, Andrea & Patel, Ritesh, 2023. "The importance of ABS 2 journals in finance scholarship: Evidence from a bibliometric case study," Finance Research Letters, Elsevier, vol. 55(PA).
    7. Ed-Dafali, Slimane & Patel, Ritesh & Iqbal, Najaf, 2023. "A bibliometric review of dividend policy literature," Research in International Business and Finance, Elsevier, vol. 65(C).
    8. Xiao Han & Chu Wei, 2021. "Household energy consumption: state of the art, research gaps, and future prospects," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(8), pages 12479-12504, August.
    9. Jacob Wood & Gohar Feroz Khan, 2015. "International trade negotiation analysis: network and semantic knowledge infrastructure," Scientometrics, Springer;Akadémiai Kiadó, vol. 105(1), pages 537-556, October.
    10. Yucheng Zhang & Zhiling Wang & Lin Xiao & Lijun Wang & Pei Huang, 2023. "Discovering the evolution of online reviews: A bibliometric review," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-22, December.
    11. Gaviria-Marin, Magaly & Merigó, José M. & Baier-Fuentes, Hugo, 2019. "Knowledge management: A global examination based on bibliometric analysis," Technological Forecasting and Social Change, Elsevier, vol. 140(C), pages 194-220.
    12. Zhangsheng Liu & Liuqingqing Yang & Liqin Fan, 2021. "Induced Effect of Environmental Regulation on Green Innovation: Evidence from the Increasing-Block Pricing Scheme," IJERPH, MDPI, vol. 18(5), pages 1-15, March.
    13. Tuba Bircan & Almila Alkim Akdag Salah, 2022. "A Bibliometric Analysis of the Use of Artificial Intelligence Technologies for Social Sciences," Mathematics, MDPI, vol. 10(23), pages 1-17, November.
    14. Yulei Xie & Ling Ji & Beibei Zhang & Gordon Huang, 2018. "Evolution of the Scientific Literature on Input–Output Analysis: A Bibliometric Analysis of 1990–2017," Sustainability, MDPI, vol. 10(9), pages 1-17, September.
    15. Duan, Zhengxiao & Zhang, Yanni & Deng, Jun & Shu, Pan & Yao, Di, 2023. "A systematic exploration of mapping knowledge domains for free radical research related to coal," Energy, Elsevier, vol. 282(C).
    16. Zhichao Wang & Valentin Zelenyuk, 2021. "Performance Analysis of Hospitals in Australia and its Peers: A Systematic Review," CEPA Working Papers Series WP012021, School of Economics, University of Queensland, Australia.
    17. Mehdi Toloo & Rouhollah Khodabandelou & Amar Oukil, 2022. "A Comprehensive Bibliometric Analysis of Fractional Programming (1965–2020)," Mathematics, MDPI, vol. 10(11), pages 1-21, May.
    18. Ming Tang & Huchang Liao & Zhengjun Wan & Enrique Herrera-Viedma & Marc A. Rosen, 2018. "Ten Years of Sustainability (2009 to 2018): A Bibliometric Overview," Sustainability, MDPI, vol. 10(5), pages 1-21, May.
    19. Ying Huang & Wolfgang Glänzel & Lin Zhang, 2021. "Tracing the development of mapping knowledge domains," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(7), pages 6201-6224, July.
    20. Nikita Jain & Deepali Virmani & Ajith Abraham, 2021. "Tsunami in the last 15 years: a bibliometric analysis with a detailed overview and future directions," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 106(1), pages 139-172, March.

    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:jsusta:v:15:y:2023:i:8:p:6685-:d:1124001. 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.