Strategic enablers for ESG adoption: a modified TISM perspective

Purpose Environmental, Social and Governance reporting (ESG) has attained immense importance among academicians, policymakers and strategic partners of business leaders. Due to high regulatory measures, this topic is becoming one of the most sustainable themes among emerging areas. There is ample literature on ESG as a sustainable business goal (SBG), but only a few studies have identified the factors that encourage the adoption of ESG reporting. The research aims to identify, determine and analyse the enablers of adopting ESG reporting adoption in developing economy India. Design/methodology/approach This study explores the strategic enablers that facilitate adopting ESG reporting practices in India. A thorough literature review and expert interviews were organized to accomplish the study’s goals. Initially identifying 23 enablers through expert interviews, this paper left with nine key enablers. Through an empirical analysis using m-TISM and MICMAC analysis, the current study has formulated the hierarchical structure to determine the relationship between strategic, operational and performance variables. Findings The research findings highlighted that the variables at the bottom of the model – a regulatory framework for a standardized code of reporting (E1), corporate governance reforms (E2) and regulatory efforts (E3) – are strategic determinants designed for successful ESG reporting adoption. Research limitations/implications To capitalize on these facilitators, the government must impose mandatory disclosure and advance the policies, rules and advantages of ESG reporting adoption. Encouraging wider adoption involves aiding SMEs in implementing ESG practices and providing incentives like tax relief, incentives or subsidies for outstanding ESG performance. Originality/value To the best of the authors’ knowledge, this is the first research in the field to use TISM and MICMAC-based hierarchical models to identify and analyse the relationship between strategic ESG enablers for adopting ESG reporting.