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Navigating the Challenges of Environmental, Social, and Governance (ESG) Reporting: The Path to Broader Sustainable Development

Author

Listed:
  • Shauhrat S. Chopra

    (School of Energy and Environment, City University of Hong Kong, Hong Kong
    These authors contributed equally to this work.)

  • Sachini Supunsala Senadheera

    (Korea Biochar Research Center, APRU Sustainable Waste Management Program and Division of Environmental Science and Ecological Engineering, Korea University, Seoul 02841, Republic of Korea
    International ESG Association (IESGA), Seoul 06621, Republic of Korea
    These authors contributed equally to this work.)

  • Pavani Dulanja Dissanayake

    (Korea Biochar Research Center, APRU Sustainable Waste Management Program and Division of Environmental Science and Ecological Engineering, Korea University, Seoul 02841, Republic of Korea
    Soils and Plant Nutrition Division, Coconut Research Institute, Lunuwila 61150, Sri Lanka)

  • Piumi Amasha Withana

    (Korea Biochar Research Center, APRU Sustainable Waste Management Program and Division of Environmental Science and Ecological Engineering, Korea University, Seoul 02841, Republic of Korea
    International ESG Association (IESGA), Seoul 06621, Republic of Korea)

  • Rajeev Chib

    (Citigroup Global Markets Asia Limited, 3 Garden Road, Champion Tower, Central, Hong Kong
    Department of Management, City University of Hong Kong, Hong Kong)

  • Jay Hyuk Rhee

    (International ESG Association (IESGA), Seoul 06621, Republic of Korea
    School of Business Administration, Korea University, Seoul 02841, Republic of Korea)

  • Yong Sik Ok

    (Korea Biochar Research Center, APRU Sustainable Waste Management Program and Division of Environmental Science and Ecological Engineering, Korea University, Seoul 02841, Republic of Korea
    International ESG Association (IESGA), Seoul 06621, Republic of Korea)

Abstract

The ascent of environmental, social, and governance (ESG) reporting has established itself as a global standard in financial markets, reflecting a paradigm shift toward corporate sustainability. Despite this, persistent concerns surround the quality of ESG reporting and its tangible impact on Sustainable Development (SD). To address the imperative transition toward a broader SD agenda within the ESG reporting framework, this study delves into contemporary issues and challenges associated with ESG reporting. It emphasizes the scarcity of interdisciplinary expertise across diversified fields, which is a crucial element for establishing robust reporting mechanisms capable of encompassing the multifaceted nature of sustainability. To address this, ESG reporting should extend beyond its company-centric focus, adapting traditional accounting systems to more effectively incorporate evolving ESG disclosure demands. This adjustment will facilitate a transparent portrayal of environmental and social impacts. The Social and Environmental Accounting (SEA) framework presents a structured approach to facilitate this transformation. This study underscores key SEA aspects that will shape future research, including enhancing data accuracy, standardizing sustainability metrics, evaluating the influence of ESG reporting on stakeholders, and refining disclosure formats.

Suggested Citation

  • Shauhrat S. Chopra & Sachini Supunsala Senadheera & Pavani Dulanja Dissanayake & Piumi Amasha Withana & Rajeev Chib & Jay Hyuk Rhee & Yong Sik Ok, 2024. "Navigating the Challenges of Environmental, Social, and Governance (ESG) Reporting: The Path to Broader Sustainable Development," Sustainability, MDPI, vol. 16(2), pages 1-14, January.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:2:p:606-:d:1316511
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    4. Serhiy Zabolotnyy, 2024. "Investigating the Nexus Between Energy Transition Reporting Practices and Corporate Efficiency in the European Agri-Food Sector," Energies, MDPI, vol. 17(21), pages 1-19, November.
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    6. Foteini I. Pagkalou & Konstantinos I. Liapis & Eleftherios I. Thalassinos, 2024. "Defining the Total CSR Z-Score: A Methodological Approach Using Regulations, Standards and Guidelines Through Application to the Greek Market," Sustainability, MDPI, vol. 16(23), pages 1-28, November.
    7. Xiaopeng Ding & Trairong Swatdikun & Xiaoque Chen & Nomahaza Mahadi, 2025. "Exploring the Role of Corporate Financial Strategy on Sustainability Performance: The Intervention of Corporate Culture of Automobile Companies in Guangxi, China," Sustainability, MDPI, vol. 17(19), pages 1-24, September.
    8. Shaoni Wang & Wander Jager, 2025. "Gaming Polarisation: Using Agent-Based Simulations as a Dialogue Tool," Sustainability, MDPI, vol. 17(10), pages 1-29, May.
    9. Costantiello, Alberto & Drago, Carlo & Arnone, Massimo & Leogrande, Angelo, 2024. "Regional Research Intensity and ESG Indicators in Italy: Insights from Panel Data Models and Machine Learning," MPRA Paper 124185, University Library of Munich, Germany.
    10. Eid M Alotaibi & Ashraf Khallaf & Abed Al-Nasser Abdallah & Taisier Zoubi & Awwad Alnesafi, 2024. "Blockchain-Driven Carbon Accountability in Supply Chains," Sustainability, MDPI, vol. 16(24), pages 1-30, December.
    11. Iman Babiker & Mashael Bakhit & Aida Osman Abdalla Bilal & Ayman Abdalla Mohammed Abubakr & Abubkr Ahmed Elhadi Abdelraheem, 2025. "The Effect of Female Representation on Boards on Environmental, Social, and Governance Disclosure: Empirical Evidence from Saudi Highly Polluting Industries," Sustainability, MDPI, vol. 17(6), pages 1-28, March.
    12. Martinčević, Ivana & Primorac, Dinko & Dorić, Barbara, 2025. "Corporate Sustainability Reporting Directive (CSRD): Obligations, Challenges and Requirements for Companies," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2024), Hybrid Conference, Dubrovnik, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Hybrid Conference, Dubrovnik, Croatia, 5-7 September, 2024, pages 317-327, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    13. Timotej Jagrič & Damijan Mumel & Aljaž Skaza, 2025. "Evaluation of Environmental, Social, and Governance Risks? A Critical Literature Review with Practical Implications," Sustainability, MDPI, vol. 17(18), pages 1-19, September.
    14. Weining Wang & Qi Zhang & Jia Hao, 2024. "How Does Green Factory Certification Affect Corporate Sustainability Performance: Evidence from China," Sustainability, MDPI, vol. 17(1), pages 1-23, December.
    15. Talan, Gaurav & Sharma, Gagan Deep & Pereira, Vijay & Muschert, Glenn W., 2024. "From ESG to holistic value addition: Rethinking sustainable investment from the lens of stakeholder theory," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    16. Sanjeev Yadav & Ashutosh Samadhiya & Anil Kumar & Sunil Luthra & Krishan Kumar Pandey, 2025. "Environmental, Social, and Governance (ESG) Reporting and Missing (M) Scores in the Industry 5.0 Era: Broadening Firms' and Investors' Decisions to Achieve Sustainable Development Goals," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(3), pages 3455-3477, June.
    17. Frank Oswald & Seyedeh Azadeh Alavi-Borazjani & Michelle Adams & Fátima Lopes Alves, 2025. "Too Much of a Good Thing? Navigating the Abundance of E&S Metrics in Ports’ Sustainability," Sustainability, MDPI, vol. 17(10), pages 1-16, May.
    18. Zahra Adardour & Slimane Ed-Dafali & Muhammad Mohiuddin & Omar El Mortagi & Hicham Sbai & Brahim Bouzahir, 2025. "Exploring the drivers of environmental, social, and governance (ESG) disclosure in an emerging market context using a mixed methods approach," Future Business Journal, Springer, vol. 11(1), pages 1-23, December.
    19. Garyfallos Fragidis & Triantafyllos Papafloratos, 2025. "An Information Architecture for the European Sustainability Reporting Standards (ESRS)," Sustainability, MDPI, vol. 17(17), pages 1-29, August.
    20. Jiajia Liao & Masooma Batool & Syed Jawad Ali Kazmi & Fengcun Feng & Abad Alzuman, 2025. "Studying the nexus of business analytics capabilities with ESG performance. How resource orchestration capabilities, organizational agility, and business model innovation bridge this relationship," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-25, December.
    21. Ying Bai & Zerui Wang & Qi Huang & Haoming Ding, 2025. "The Impact of ESG Performance on Corporate Value in Listed Sports Companies: The Mediating Role of Intangible Assets and Moderating Role of Policy Environment," Sustainability, MDPI, vol. 17(6), pages 1-15, March.

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