The Application and Challenges of Environment, Social and Governance in the Global Carbon Neutrality Vision

Review The Application and Challenges of Environment, Social and Governance in the Global Carbon Neutrality Vision Ruhan Ma 1,2, Hengjia Jia 1, Gaotingyue Li 1,3, and Fanghua Li 1,2,* 1 National Engineering Research Center for Safe Disposal and Resources Recovery of Sludge, School of Environment, Harbin Institute of Technology, Harbin 150090, China 2 State Key Laboratory of Urban-Rural Water Resource and Environment, School of Environment, Harbin Institute of Technology, Harbin 150090, China 3 Dalian Institute of Chemical Physics, Chinese Academy of Sciences, Dalian 116023, China * Correspondence: [email protected] Received: 11 March 2025; Revised: 26 March 2025; Accepted: 14 April 2025; Published: 21 April 2025 Abstract: In the urgent context of global warming, this paper comprehensively examines the application and challenges of environmental, social, and governance (ESG) frameworks in achieving the global carbon neutrality vision. ESG, encompassing environmental, social, and governance factors, serves as a critical tool for evaluating the sustainable development performance of enterprises. ESG ratings provide essential data for research and strategic decision-making on ESG initiatives. Originating from socially responsible investment in the 1960s, the concept of ESG has evolved through four distinct stages: origin, development, establishment, and rapid development. This paper begins by outlining the concept of carbon neutrality, detailing its emergence, timeline, and current status. It then traces the evolution of ESG. Through an extensive review of literature and detailed case studies, this paper synthesizes existing research to offer actionable insights for stakeholders, reflecting on past practices, analyzing current applications, and forecasting future challenges and opportunities in the journey towards global carbon neutrality.