The ESG Evolution: Bridging the Gap Between Global Standards and Local Realities in Emerging Markets

This systematic literature review explores the challenges faced by companies operating in emerging markets concerning Environmental, Social, and Governance (ESG). The review uses both institutional and stakeholder theoretical frameworks to analyse the complex landscape of ESG implementation in the context of emerging markets.The findings of these study majorly identify three critical dimensions of challenges. First, environmental challenges are primarily the result of poor regulatory enforcement, limited monitoring capacities, and poor resource management infrastructure. Second, social challenges appear in the form of labour right issues, tough community relations and enduring social equity barriers. Third, governance problems are generated out of concentrated ownership structures, information asymmetries and poor risk management framework. Moreover, this study also contributes to the literature by gaining a systematic view into ESG challenges in emerging markets along with effective response strategies. These findings have important implications for corporate managers, policymakers, and researchers of sustainability initiatives in emerging economies. Research directions for the future are suggested in terms of implementation effectiveness and the impact of institutional development on the implementation of ESG practises.