The Evolution of ESG and Sustainability Reporting: A Review of Standards, Challenges, and Impacts on Corporate Transparency

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Provides a comprehensive theoretical framework linking ESG reporting to legitimacy and institutional pressures, useful for future empirical studies.

🏢実務担当者:Offers practical recommendations for integrating ESG governance and leveraging digital reporting to enhance transparency and investor trust.

🏛政策担当者:Highlights the need for global alignment of standards and digital reporting infrastructure to improve comparability and reduce greenwashing.

Environmental, Social, and Governance (ESG) reporting has become a central element of corporate transparency and accountability as global sustainability concerns and responsible investment practices intensify. This paper reviews the evolution, challenges, and impacts of ESG and sustainability reporting over the past two decades. Using a systematic literature review (SLR) of peer-reviewed studies and regulatory reports published between 2000 and 2025, the study synthesizes bibliometric patterns and thematic insights to trace the transition from voluntary Corporate Social Responsibility (CSR) disclosures to more standardized and mandatory ESG frameworks, including GRI, SASB, TCFD, IFRS S1/S2, and the EU CSRD/ESRS. Findings reveal a clear progression toward institutionalized ESG disclosure driven by regulatory reforms, investor demand, and normative legitimacy pressures. Despite this progress, persistent challenges—such as inconsistent data, limited comparability, fragmented assurance practices, and risks of greenwashing—continue to undermine credibility. Evidence suggests that robust ESG reporting can enhance transparency, strengthen investor trust, and improve governance quality; however, these effects vary depending on the rigor of reporting standards and the authenticity of corporate commitment. The review contributes theoretically by framing ESG reporting as a legitimacy-building and institutionally shaped practice influenced by coercive, normative, and stakeholder pressures. Practically, it offers recommendations for regulators (global alignment and digital reporting), corporations (integrated ESG governance), and investors (data-driven evaluation). Future research avenues include cross-country quantitative analyses and the role of emerging technologies such as AI and blockchain in enhancing ESG assurance and transparency. Overall, the study underscores the growing importance of harmonized ESG reporting for sustainable corporate behavior and market governance.