Journal of Environmental Biology

A critical review of environmental, social and governance (ESG) disclosure practices and their environmental implications

A. Gedam¹, A. Sharma¹* and N. Gupta²     

¹Symbiosis Institute of Business Management, Pune, Symbiosis International (Deemed University), Pune-412 115, India

²Niranjanlalji Dalmia Institute of Management Studies and Research, Mumbai- 401 107, India

Received: 24 October 2025                   Revised: 14 January 2026                   Accepted: 28 February 2026

*Corresponding Author Email : arpitasharma@sibmpune.edu.in                  *ORCiD: https://orcid.org/0000-0001-7712-9206

Abstract

Environmental issues significantly impact any firm's performance. ESG (Environment, Social and Governance) disclosure assesses a firm on various environmental parameters. Despite previous studies addressing issues, studies addressing the relationship between ESG disclosure, economic sustainability, and the environment are scant. This study aimed to examine the impacts of ESG disclosure as a tool of environmental governance on financial performance (a subset of economic sustainability) and the environment, along with addressing gaps, theories, context, characteristics, and methodologies for the future. We used the TCCM (Theories, Context, Characteristics, and Methodology) literature review framework to conduct our study on the collected literature samples. The Scopus database is used to collect the literature samples based on adequate filters.

We found positive impacts of ESG disclosure, like driving green energy innovation, meeting environmental goals, reduced energy consumption, and negative impacts, like inability to drive carbon emission alone, greenwashing, etc. Green Economics, Environmental Economics, etc., are some of the least studied theories. Baltic, south-east Asian, and other regions are the geographic gaps. Variables like corporate efficiency/innovation, etc., need more attention. This study has a profound usage for corporate and sustainability managers, investors, academicians, researchers, regulatory authorities, and policymakers.

Key words: Environment, Economic Sustainability, ESG, Greenwashing, Green Economics

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