A systematic review of ESG indicators and corporate performance: proposal for a conceptual framework

Abstract

Abstract Despite the attention given by global stakeholders to transparency and disclosure of nonfinancial corporate information, there is a lack of consensus regarding the disclosure and analysis of corporate results on ESG. The objective of this study is to identify the main environmental, social, and governance (ESG) indicators from the literature and analyze their impact on corporate company performances, as well as a conceptual structure that supports the understanding of these indicators. A systematic literature review was applied to raise and analyze relevant works in the field, following the guidelines of the Preferred reporting items for systematic reviews and meta-analysis (PRISMA). We identified and categorized the main indicators for each of the ESG dimensions, as well as the corporate performance (CP) variables impacted by ESG performance, allowing for a comprehensive analysis of their interrelations. Our results indicate that financial performance indicators must be assessed from a long-term perspective, as short-term analyses may show negative relationships with ESG performance. However, for nonfinancial aspects, the relationship with ESG performance is consistently positive across all time horizons. Additionally, we propose a conceptual framework that advances the ESG literature by establishing explicit connections between ESG dimensions and corporate performance variables. This framework categorizes CP into four key areas—financial performance, market and risk perception, strategic positioning, and capital structure—providing a structured approach for evaluating ESG impacts. Our study contributes to both theory and practice, offering insights that support corporate decision-making and sustainability strategies.