Five decades of ESG reporting research: a synthesis and future research avenues

Purpose The paper aims to present a systematic review of environmental, social and governance (ESG) reporting research published in the last 50 years and highlights the existing research gaps to suggest avenues for future research. Design/methodology/approach This research employs a text-mining approach and the stimulus-organisation-response (SOR) framework to analyse 2,864 articles extracted from the Scopus database. Structural topic modelling (STM) was used to analyse the text data derived from the titles, abstracts and author keywords of these articles. Findings The analysis results in 20 key themes, which were categorised using the SOR framework: stimulus (external variables or sources), organism (internal systems, structures, processes and beliefs) and response (observable implications or actions). Our findings identify emerging research topics, including tax avoidance, ownership structure, investor decision-making and corporate governance, to advance the body of knowledge. Research limitations/implications This study has numerous implications for decision-makers in academia, industry, government, non-governmental organisations, regulatory bodies and the broader community. A variety of stakeholders might find this study helpful in examining the forces behind the advancements in ESG reporting. Practical implications This review benefits academic studies and offers significant practical implications for businesses, policymakers and society at large. ESG reporting gauges an organisation’s sustainable and ethical practices, thereby impacting long-term success and reputation. Firms may improve their competitive advantage by gaining a deeper understanding of the nuances of ESG disclosures, best practices, optimal approaches and corresponding constraints. Regulators, policymakers, employees, leaders, investors and other stakeholders will find value in this study. Originality/value This study uses the robust text-mining STM method to analyse a large number of ESG research articles, thereby expanding knowledge on the critical role of ESG reporting in organisational decision-making related to sustainable development.