ESG in supply chain management: a systematic review

Environmental, social, and governance (ESG) considerations have become essential for firms striving for sustainable growth in the face of increased environmental degradation, social inequality, and governance challenges. Supply chain (SC), characterised by its interconnected and multi-tiered structure, constitutes the primary system through which ESG is implemented, diffused, and evaluated. A firm’s ESG practices, such as responsible sourcing, labour protection, and information transparency, often extends beyond its boundaries, thereby influencing the behaviour and performance of other upstream and downstream participants in the SC network. Consequently, SCs have evolved into fundamental units for assessing ESG implementation and governing inter-firm ESG practices. To advance understanding of ESG in supply chain management, we conducted a systematic review and bibliometric analysis of 114 peer-reviewed articles. A multi-dimensional analysis categorises the findings across the three analytical dimensions, namely upstream and downstream factors, inter-firm factors, and SC factors. The results reveal a prevailing emphasis on positive outcomes of ESG implementation, such as enhanced SC performance and customer awareness. However, the existing literature pays comparatively less attention to the potential downsides and trade-offs of ESG implementation, including high cost burdens and greenwashing risks. Important theoretical and practical implications are also discussed.