Exploring the ESG–Green Credit Nexus: Evidence from Bibliometric and Systematic Perspectives

This study explores the intersection between Environmental, Social, and Governance (ESG) practices and green credit, focusing on their reciprocal relationship in sustainable finance. The research combines bibliometric analysis and systematic review to map the ESG–green credit nexus, identifying key trends, leading authors, and thematic clusters in the field. Using tools like VOSviewer and Biblioshiny, the bibliometric analysis examines publication patterns and sources, while the systematic review synthesizes the ten most cited studies to uncover the causal mechanisms linking ESG and green credit. Findings indicate that green credit enhances environmental performance, while better ESG performance improves access to green financing and reduces costs, driving investment in sustainable innovations. Emerging trends include the integration of fintech and digital transformation in ESG reporting, where technologies like blockchain and AI improve transparency and the efficiency of green credit allocation. However, concerns about greenwashing highlight the need for stronger governance mechanisms to ensure the credibility of ESG practices. Despite these advances, challenges such as regional disparities and inconsistent ESG measurement standards remain. This study provides practical recommendations for policymakers and financial institutions, urging alignment of green credit policies with ESG goals to foster sustainable development and support the transition to a low-carbon economy. Research purpose: The purpose of this study is to explore the intersection between Environmental, Social, and Governance (ESG) practices and green credit, investigating the mutual relationship between these two dimensions of sustainable finance. By employing bibliometric analysis and systematic review, this research aims to map the structural landscape and identify critical mechanisms that link ESG performance and access to green financing. Research motivation: The growing emphasis on sustainability in business practices has led to increasing interest in the role of green credit in enhancing ESG performance. Despite the expanding literature, significant gaps remain in understanding how ESG and green credit interact, particularly across different geographic contexts. This research seeks to address these gaps, offering a more comprehensive understanding of their mutual relationship and implications for sustainable finance. Research design, approach, and method: This study employs a mixed-methods approach, combining bibliometric analysis and systematic review. The bibliometric analysis utilizes tools such as VOSviewer and Biblioshiny to identify trends, key authors, sources, and thematic clusters within the ESG and green credit research domain. The systematic review synthesizes the findings from the ten most influential articles, focusing on the causal mechanisms and empirical evidence linking ESG practices with green credit access. Main findings: The study reveals a strong reciprocal relationship between ESG practices and green credit. Green credit enhances environmental performance, while superior ESG performance improves access to green financing. Emerging trends include the integration of fintech, digital transformation in ESG disclosure and the rising concern over greenwashing risks. These factors highlight the need for stronger governance in green credit policies. However, regional disparities and inconsistencies in ESG measurement remain significant challenges. Practical/managerial implications: The findings suggest that policymakers and financial institutions should align green credit policies with ESG objectives to foster more sustainable business practices. By providing clear frameworks for ESG measurement and incentivizing green innovation, financial institutions can better support businesses in their transition towards sustainability. This research also highlights the importance of cross-country comparisons to inform global policies and standards.