Environmental, Social, and Governance Disclosure and Corporate Value: A Global SLR Perspective for Economic Policymakers

Abstract

In light of the increasing global focus on sustainability and ethical investment practices, Environmental, Social, and Governance (ESG) disclosures have become a key factor in assessing corporate value beyond conventional financial indicators. This research adopts a Systematic Literature Review methodology, analyzing insights from several peer-reviewed journal publications issued over the last year, to explore the worldwide connection between ESG transparency and firm performance. The findings reveal that most studies demonstrate a positive correlation, emphasizing advantages such as greater investor confidence, decreased risk exposure, and enhanced corporate image. However, outcomes differ significantly across sectors, geographical locations, and regulatory settings. This review highlights the necessity of trustworthy ESG reporting practices, backed by solid institutional support, and advises that policy frameworks be adapted to local contexts for optimal impact. The study enriches the understanding of ESG’s strategic function in promoting sustainable corporate governance and provides practical recommendations for investors, policymakers, and business executives.