Unveiling key factors influencing corporate ESG reporting adoption: a TISM and MICMAC analysis

Environmental, social, and governance (ESG) reporting, which goes beyond a mere compliance tool, can potentially become an effective instrument for driving sustainable business practices. This study explores the factors and their complexities utilising the total interpretive structural modelling (TISM) systematic method. It constructs an empirical model revealing hierarchical interrelatedness among critical factors. Further, Matrice d'Impacts Croisés Multiplication Appliquée à un Classement (MICMAC) analysis is used to study the driving and dependence connection. The study categorises key factors at three levels, strategic factors that affect policy formulation, operational factors that strengthen the adoption process, and performance factors that impact the compliance management of corporate ESG reporting. The study provides methodological advancements by using robust measurement tools, allowing for more accurate assessment and communication of results. Study recommendations align with institutional theory and normative values. The study presents a comprehensive hierarchical model for navigating and enhancing global ESG reporting adoption sustainably.