Quality of Environmental, Social, and Governance (ESG) Reporting: A Systematic Literature Review
Keywords:
ESG, ESG disclosure quality, sustainability reporting quality, systematic literature review, PRISMA 2020.
Abstract
The quality of Environmental, Social, and Governance (ESG) disclosure has received increasing attention alongside growing demands for corporate transparency and accountability to stakeholders. However, research on ESG disclosure remains inconsistent in defining and measuring disclosure quality, as some studies still use the level or quantity of disclosure as a proxy for quality. This study aims to analyze the development of research on ESG disclosure quality, identify the theories and research methods employed, examine approaches to measuring disclosure quality, and identify key findings and research gaps in the literature. This study employs a Systematic Literature Review (SLR) following the PRISMA 2020 guidelines. The literature analyzed consists of academic articles published between 2020 and 2025, selected through identification, screening, eligibility assessment, and inclusion procedures based on predetermined inclusion and exclusion criteria. The findings indicate that research on ESG disclosure quality has evolved from approaches focusing primarily on disclosure levels toward greater attention to completeness, materiality, transparency, accuracy, information depth, and disclosure credibility. Stakeholder theory, legitimacy theory, institutional theory, agency theory, and signaling theory are among the most frequently used theoretical perspectives to explain ESG disclosure practices. Quantitative methods, particularly regression and panel data analysis, dominate the literature, while approaches to measuring disclosure quality remain heterogeneous across studies. The review also indicates that corporate governance mechanisms, firm characteristics, stakeholder pressure, regulatory requirements, and assurance are among the factors associated with ESG disclosure quality. The main research gaps concern the lack of consensus regarding the definition and measurement indicators of ESG disclosure quality, as well as the limited evidence from developing countries and the ASEAN region. This study provides a systematic mapping of the literature that can serve as a basis for developing more comprehensive and consistent measures of ESG disclosure quality in future research.
References
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Christensen, H. B., Hail, L., & Leuz, C. (2021). Mandatory CSR and sustainability reporting: Economic analysis and literature review. Review of Accounting Studies, 26, 1176–1248.
Dabbebi, H., et al. (2022). Peering through the smokescreen: ESG disclosure and CEO personality. Managerial and Decision Economics, 43(7), 3147–3164. https://doi.org/10.1002/mde.3587
De Masi, S., Słomka-Gołębiowska, A., Paci, A., & Venturini, S. (2021). Toward sustainable corporate behavior: The effect of the critical mass of female directors on ESG disclosure. Business Strategy and the Environment. https://doi.org/10.1002/bse.2721
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Dewi, A. A., Saraswati, E., Rahman, A. F., & Atmini, S. (2023). Materiality, stakeholder engagement disclosure, and corporate governance: Critical elements for the quality of sustainability reporting. Cogent Business & Management, 10(1), 2175437. https://doi.org/10.1080/23311975.2023.2175437
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Ellili, N. O. D. (2022). Impact of ESG disclosure and financial reporting quality on investment efficiency. Corporate Governance, 22(5), 1094–1111. https://doi.org/10.1108/CG-06-2021-0209
Ellili, N. O. D. (2023). Impact of corporate governance on environmental, social, and governance disclosure: Any difference between financial and non-financial companies? Corporate Social Responsibility and Environmental Management, 30(2), 858–873. https://doi.org/10.1002/csr.2393
Gerwing, C., Kajüter, P., & Wirth, M. (2022). The role of sustainable corporate governance in mandatory sustainability reporting quality. Journal of Business Economics, 92, 517–555. https://doi.org/10.1007/s11573-022-01092-x
Hammami, A., & Zadeh, M. H. (2020). Audit quality, media coverage, environmental, social, and governance disclosure and firm investment efficiency: Evidence from Canada. International Journal of Accounting & Information Management, 28(1), 45–72. https://doi.org/10.1108/IJAIM-03-2019-0041
Kallisia, M. P., Mukhibad, H., & Prince, W. B. A. (2025). Determinants of ESG disclosure in ASEAN-5 countries: A legitimacy and institutional theory approach. ETHICS, 13(2). https://doi.org/10.32497/keunis.v13i2.6392
Khalid, F., et al. (2022). Firm characteristics, governance mechanisms, and ESG disclosure: How caring about sustainable concerns? Environmental Science and Pollution Research, 29, 82064–82077. https://doi.org/10.1007/s11356-022-21489-z
Latella, P., & Veltri, S. (2024). The drivers of nonfinancial disclosure quality: A systematic literature review analysis. Corporate Social Responsibility and Environmental Management, 31(6), 5524–5542. https://doi.org/10.1002/csr.2880
Lavin, J. F., & Montecinos-Pearce, A. A. (2021a). ESG reporting: Empirical analysis of the influence of board heterogeneity from an emerging market. Sustainability, 13(6), 3090. https://doi.org/10.3390/su13063090
Lavin, J. F., & Montecinos-Pearce, A. A. (2021b). ESG disclosure in an emerging market: An empirical analysis of the influence of board characteristics and ownership structure. Sustainability, 13(19), 10498. https://doi.org/10.3390/su131910498
Lee, et al. (2023). The relationship between the quality of sustainability reporting and corporate financial performance: A cross-sectional and longitudinal study. Australasian Accounting, Business and Finance Journal, 17(2), 38–60. https://doi.org/10.14453/aabfj.v17i2.04
Martiny, A., Taglialatela, J., Testa, F., & Iraldo, F. (2024). Determinants of environmental, social and governance (ESG) performance: A systematic literature review. Journal of Cleaner Production, 456, 142213. https://doi.org/10.1016/j.jclepro.2024.142213
Mansor, S. M., Hassan, M. S., Jaffar, R., & Abdullah, M. (2024). The disclosure quality issues of integrated report: A systematic literature review. Asian Journal of Accounting and Governance, 21, 63–76. https://doi.org/10.17576/AJAG-2024-21-05
Permatasari, P., Gunawan, J., & El-Bannany, M. (2020). A comprehensive measurement for sustainability reporting quality: Principles-based approach. Indonesian Journal of Sustainability Accounting and Management, 4(2), 249–265. https://doi.org/10.28992/ijsam.v4i2.282
Qureshi, M. I., et al. (2020). The impact of sustainability (ESG) disclosure and board diversity on firm value: The moderating role of industry sensitivity. Business Strategy and the Environment. https://doi.org/10.1002/bse.2427
Rahman, M. M., et al. (2021). Determinants of corporate environment, social and governance (ESG) reporting among Asian firms. Journal of Risk and Financial Management, 14(4), 167. https://doi.org/10.3390/jrfm14040167
Roszkowska-Menkes, M., Aluchna, M., & Kamiński, B. (2024). True transparency or mere decoupling? The study of selective disclosure in sustainability reporting. Critical Perspectives on Accounting, 98, 102700. https://doi.org/10.1016/j.cpa.2023.102700
Sari, T. K., & Fitriani, N. (2023). How do board characteristics influence the ESG disclosure in Indonesia? Indonesian Journal of Accounting and Auditing, 27(2). https://doi.org/10.20885/jaai.vol27.iss2.art9
Seow, R. Y. C. (2024a). Determinants of environmental, social, and governance disclosure: A systematic literature review. Business Strategy and the Environment, 33(3), 2314–2330. https://doi.org/10.1002/bse.3604
Seow, R. Y. C. (2024b). Emerging trends of environmental, social and governance (ESG) disclosure research. Cleaner Production Letters, 7, 100079. https://doi.org/10.1016/j.clpl.2024.100079
Sharma, P., Panday, P., & Dangwal, R. C. (2020). Determinants of environmental, social and corporate governance (ESG) disclosure: A study of Indian companies. International Journal of Disclosure and Governance, 17, 208–217. https://doi.org/10.1057/s41310-020-00085-y
Sneideriene, A., & Legenzova, R. (2025). Greenwashing prevention in environmental, social, and governance (ESG) disclosures: A bibliometric analysis. Research in International Business and Finance, 74, 102720. https://doi.org/10.1016/j.ribaf.2024.102720
Somoza, A. (2023). Voluntary sustainability assurance in small and medium-sized entities: The role of country origin in Europe. Business Strategy and the Environment, 32(1), 462–483. https://doi.org/10.1002/bse.3155
Suttipun, M. (2021). The influence of board composition on environmental, social and governance (ESG) disclosure of Thai listed companies. International Journal of Disclosure and Governance, 18(4), 391–402. https://doi.org/10.1057/s41310-021-00120-6
Wahyuningrum, I. F. S., Sriningsih, Puspita, A. S., Budihardjo, M. A., Chegenizadeh, A., & Nikraz, H. (2025). Has mandatory reporting improved environmental disclosure quality in Indonesia? World Development Perspectives, 39, 100718. https://doi.org/10.1016/j.wdp.2025.100718
You, X., Chen, C., Peng, K., & Li, Y. (2025). ESG disclosure quality and cost of debt. Emerging Markets Review, 64, 101219. https://doi.org/10.1016/j.ememar.2024.101219
Yu, E. P.-Y., & Van Luu, B. (2021). International variations in ESG disclosure: Do cross-listed companies care more? International Review of Financial Analysis, 75, 101731. https://doi.org/10.1016/j.irfa.2021.101731
Al Amosh, H., & Khatib, S. F. A. (2022). Ownership structure and environmental, social and governance performance disclosure: The moderating role of board independence. Journal of Business and Socio-Economic Development, 2(1), 49–66. https://doi.org/10.1108/JBSED-07-2021-0094
Al-Shaer, H. (2020). Sustainability reporting quality and post-audit financial reporting quality: Empirical evidence from the UK. Business Strategy and the Environment, 29(6), 2355–2373. https://doi.org/10.1002/bse.2507
Albitar, K., Hussainey, K., Kolade, N., & Gerged, A. M. (2020). ESG disclosure and firm performance before and after IR: The moderating role of governance mechanisms. International Journal of Accounting & Information Management, 28(3), 429–444. https://doi.org/10.1108/IJAIM-09-2019-0108
Alodat, A. Y., Salleh, Z., & Hashim, H. A. (2022). Corporate governance and sustainability disclosure: Evidence from Jordan. Corporate Governance, 23(3), 587–606. https://doi.org/10.1108/CG-04-2022-0162
Arayssi, M., Jizi, M., & Tabaja, H. H. (2020). The impact of board composition on the level of ESG disclosures in GCC countries. Sustainability Accounting, Management and Policy Journal. https://doi.org/10.1108/SAMPJ-05-2018-0136
Arif, M., Sajjad, A., Farooq, S., Abrar, M., Joyo, A. S., & Shafique, M. (2021). The impact of audit committee attributes on the quality and quantity of environmental, social and governance (ESG) disclosures. Corporate Governance, 21(3), 497–514. https://doi.org/10.1108/CG-06-2020-0243
Arvidsson, S., & Dumay, J. (2022). Corporate ESG reporting quantity, quality and performance: Where to now for environmental policy and practice? Business Strategy and the Environment, 31(3), 1091–1110. https://doi.org/10.1002/bse.2937
Aureli, S., Del Baldo, M., Lombardi, R., & Nappo, F. (2020). Nonfinancial reporting regulation and challenges in sustainability disclosure and corporate governance practices. Business Strategy and the Environment. https://doi.org/10.1002/bse.2509
Bamahros, H. M., et al. (2022). Corporate governance mechanisms and ESG reporting: Evidence from the Saudi stock market. Sustainability, 14(10), 6202. https://doi.org/10.3390/su14106202
Bhatia, A., & Marwaha, D. (2022). The influence of board factors and gender diversity on the ESG disclosure score: A study on Indian companies. Global Business Review, 23(6), 1544–1557. https://doi.org/10.1177/09721509221132067
Bosi, M. K., et al. (2022). Sustainability reporting through environmental, social, and governance: A bibliometric review. Sustainability, 14(19), 12071. https://doi.org/10.33 90/su141912071
Chebbi, K., & Ammer, M. A. (2022). Board composition and ESG disclosure in Saudi Arabia: The moderating role of corporate governance reforms. Sustainability, 14(19), 12173. https://doi.org/10.3390/su141912173
Christensen, H. B., Hail, L., & Leuz, C. (2021). Mandatory CSR and sustainability reporting: Economic analysis and literature review. Review of Accounting Studies, 26, 1176–1248.
Dabbebi, H., et al. (2022). Peering through the smokescreen: ESG disclosure and CEO personality. Managerial and Decision Economics, 43(7), 3147–3164. https://doi.org/10.1002/mde.3587
De Masi, S., Słomka-Gołębiowska, A., Paci, A., & Venturini, S. (2021). Toward sustainable corporate behavior: The effect of the critical mass of female directors on ESG disclosure. Business Strategy and the Environment. https://doi.org/10.1002/bse.2721
Del Gesso, C., & Lodhi, R. N. (2025). Theories underlying environmental, social and governance (ESG) disclosure: A systematic review of accounting studies. Journal of Accounting Literature, 47(2), 433–461. https://doi.org/10.1108/JAL-08-2023-0143
Dewi, A. A., Saraswati, E., Rahman, A. F., & Atmini, S. (2023). Materiality, stakeholder engagement disclosure, and corporate governance: Critical elements for the quality of sustainability reporting. Cogent Business & Management, 10(1), 2175437. https://doi.org/10.1080/23311975.2023.2175437
Ellili, N. O. D. (2020). Environmental, social, and governance disclosure, ownership structure, and cost of capital: Evidence from the UAE. Sustainability, 12(18), 7706. https://doi.org/10.3390/su12187706
Ellili, N. O. D. (2022). Impact of ESG disclosure and financial reporting quality on investment efficiency. Corporate Governance, 22(5), 1094–1111. https://doi.org/10.1108/CG-06-2021-0209
Ellili, N. O. D. (2023). Impact of corporate governance on environmental, social, and governance disclosure: Any difference between financial and non-financial companies? Corporate Social Responsibility and Environmental Management, 30(2), 858–873. https://doi.org/10.1002/csr.2393
Gerwing, C., Kajüter, P., & Wirth, M. (2022). The role of sustainable corporate governance in mandatory sustainability reporting quality. Journal of Business Economics, 92, 517–555. https://doi.org/10.1007/s11573-022-01092-x
Hammami, A., & Zadeh, M. H. (2020). Audit quality, media coverage, environmental, social, and governance disclosure and firm investment efficiency: Evidence from Canada. International Journal of Accounting & Information Management, 28(1), 45–72. https://doi.org/10.1108/IJAIM-03-2019-0041
Kallisia, M. P., Mukhibad, H., & Prince, W. B. A. (2025). Determinants of ESG disclosure in ASEAN-5 countries: A legitimacy and institutional theory approach. ETHICS, 13(2). https://doi.org/10.32497/keunis.v13i2.6392
Khalid, F., et al. (2022). Firm characteristics, governance mechanisms, and ESG disclosure: How caring about sustainable concerns? Environmental Science and Pollution Research, 29, 82064–82077. https://doi.org/10.1007/s11356-022-21489-z
Latella, P., & Veltri, S. (2024). The drivers of nonfinancial disclosure quality: A systematic literature review analysis. Corporate Social Responsibility and Environmental Management, 31(6), 5524–5542. https://doi.org/10.1002/csr.2880
Lavin, J. F., & Montecinos-Pearce, A. A. (2021a). ESG reporting: Empirical analysis of the influence of board heterogeneity from an emerging market. Sustainability, 13(6), 3090. https://doi.org/10.3390/su13063090
Lavin, J. F., & Montecinos-Pearce, A. A. (2021b). ESG disclosure in an emerging market: An empirical analysis of the influence of board characteristics and ownership structure. Sustainability, 13(19), 10498. https://doi.org/10.3390/su131910498
Lee, et al. (2023). The relationship between the quality of sustainability reporting and corporate financial performance: A cross-sectional and longitudinal study. Australasian Accounting, Business and Finance Journal, 17(2), 38–60. https://doi.org/10.14453/aabfj.v17i2.04
Martiny, A., Taglialatela, J., Testa, F., & Iraldo, F. (2024). Determinants of environmental, social and governance (ESG) performance: A systematic literature review. Journal of Cleaner Production, 456, 142213. https://doi.org/10.1016/j.jclepro.2024.142213
Mansor, S. M., Hassan, M. S., Jaffar, R., & Abdullah, M. (2024). The disclosure quality issues of integrated report: A systematic literature review. Asian Journal of Accounting and Governance, 21, 63–76. https://doi.org/10.17576/AJAG-2024-21-05
Permatasari, P., Gunawan, J., & El-Bannany, M. (2020). A comprehensive measurement for sustainability reporting quality: Principles-based approach. Indonesian Journal of Sustainability Accounting and Management, 4(2), 249–265. https://doi.org/10.28992/ijsam.v4i2.282
Qureshi, M. I., et al. (2020). The impact of sustainability (ESG) disclosure and board diversity on firm value: The moderating role of industry sensitivity. Business Strategy and the Environment. https://doi.org/10.1002/bse.2427
Rahman, M. M., et al. (2021). Determinants of corporate environment, social and governance (ESG) reporting among Asian firms. Journal of Risk and Financial Management, 14(4), 167. https://doi.org/10.3390/jrfm14040167
Roszkowska-Menkes, M., Aluchna, M., & Kamiński, B. (2024). True transparency or mere decoupling? The study of selective disclosure in sustainability reporting. Critical Perspectives on Accounting, 98, 102700. https://doi.org/10.1016/j.cpa.2023.102700
Sari, T. K., & Fitriani, N. (2023). How do board characteristics influence the ESG disclosure in Indonesia? Indonesian Journal of Accounting and Auditing, 27(2). https://doi.org/10.20885/jaai.vol27.iss2.art9
Seow, R. Y. C. (2024a). Determinants of environmental, social, and governance disclosure: A systematic literature review. Business Strategy and the Environment, 33(3), 2314–2330. https://doi.org/10.1002/bse.3604
Seow, R. Y. C. (2024b). Emerging trends of environmental, social and governance (ESG) disclosure research. Cleaner Production Letters, 7, 100079. https://doi.org/10.1016/j.clpl.2024.100079
Sharma, P., Panday, P., & Dangwal, R. C. (2020). Determinants of environmental, social and corporate governance (ESG) disclosure: A study of Indian companies. International Journal of Disclosure and Governance, 17, 208–217. https://doi.org/10.1057/s41310-020-00085-y
Sneideriene, A., & Legenzova, R. (2025). Greenwashing prevention in environmental, social, and governance (ESG) disclosures: A bibliometric analysis. Research in International Business and Finance, 74, 102720. https://doi.org/10.1016/j.ribaf.2024.102720
Somoza, A. (2023). Voluntary sustainability assurance in small and medium-sized entities: The role of country origin in Europe. Business Strategy and the Environment, 32(1), 462–483. https://doi.org/10.1002/bse.3155
Suttipun, M. (2021). The influence of board composition on environmental, social and governance (ESG) disclosure of Thai listed companies. International Journal of Disclosure and Governance, 18(4), 391–402. https://doi.org/10.1057/s41310-021-00120-6
Wahyuningrum, I. F. S., Sriningsih, Puspita, A. S., Budihardjo, M. A., Chegenizadeh, A., & Nikraz, H. (2025). Has mandatory reporting improved environmental disclosure quality in Indonesia? World Development Perspectives, 39, 100718. https://doi.org/10.1016/j.wdp.2025.100718
You, X., Chen, C., Peng, K., & Li, Y. (2025). ESG disclosure quality and cost of debt. Emerging Markets Review, 64, 101219. https://doi.org/10.1016/j.ememar.2024.101219
Yu, E. P.-Y., & Van Luu, B. (2021). International variations in ESG disclosure: Do cross-listed companies care more? International Review of Financial Analysis, 75, 101731. https://doi.org/10.1016/j.irfa.2021.101731
Published
2026-09-26
How to Cite
Savitri, J. A., Yusnaini, Y., & Kartasari, S. F. (2026). Quality of Environmental, Social, and Governance (ESG) Reporting: A Systematic Literature Review. International Journal of Education, Vocational and Social Science , 5(04), 1985-2011. https://doi.org/10.63922/ijevss.v5i04.6674
Contact Person +6282139474255
Email : ijevss@citakonsultindo.or.id / editor.ijevss@gmail.com
