Corporate ESG Practices of Developed Countries

This chapter examines the ESG landscape in developed countries which were characterised by strong regulatory frameworks, advanced financial markets, and heightened stakeholder expectations. The growing awareness of environmental degradation, social inequality, and governance failures has created an increasing demand for corporate accountability and transparency. The rising popularity of sustainable investing, ESG integration, impact investing, and active shareholder engagement has further propelled firms in these economies into adopting ESG practices. This chapter explores the key drivers, the practices, and the challenges shaping ESG implementation in developed markets. It highlights the leadership role played by these countries in advancing global sustainability standards. The chapter also analyses the overall ESG performance of these markets by providing the breakdown of their scores across the environmental, social, and governance dimensions as well as across some critical sectors. It further identifies the top ten and bottom ten ESG performers among the listed firms. It discusses the role of government policies in incentivising responsible business conduct, in promoting transparency, and in mitigating environmental and social risks. Despite the progresses made, firms in developed markets continue to face challenges like inconsistent measurements, data gaps, and the absence of standardised frameworks. Finally, this chapter outlines the strategies firms can use to address these barriers by drawing on empirical evidence obtained from the literature. The chapter concludes by emphasising the importance of enhanced public-private partnerships as a step to tackle global challenges, particularly climate change.