Corporate Governance Pillars and ESG Disclosure: A Systematic Literature Review

Abstract

Environmental, social, and governance (ESG) disclosure is attracting the attention of standard setters, regulatory bodies, academics, and practitioners. This interest stems from the evolution of ESG disclosure standards—notably, the new sustainability standards developed by the International Sustainability Standards Board. While considering the opportunities that these new standards offer for future research, this study sheds light on the roles of the key corporate governance pillars involved in the ESG disclosure process, as documented in previous research. A content analysis of 181 articles published between 2009 and 2024 focuses on the roles of three main pillars in ESG disclosure: management, audit committees, and external auditors. Our analysis shows that the role of management stands out most, whereas research remains limited on the roles of the audit committee and external auditors. Our results highlight the roles of these corporate governance pillars in the ESG disclosure process and point to future research opportunities. Our study also notes a growing interest in ESG disclosure research and calls on practitioners and policymakers to strengthen corporate governance mechanisms, while encouraging the adoption of the new ESG disclosure standards.