The Role of ESG Criteria in Sustainable Financial Project Scope Management: A Systematic Literature Review
DOI:
https://doi.org/10.37641/jimkes.v13i6.4048Keywords:
ESG, Financial Projects, Responsible Investments, Sustainable Financial ManagementAbstract
In the era of sustainable development, financial scope management increasingly demands the integration of environmental, social, and governance criteria to ensure long-term project viability and resilience. This study examines how incorporating environmental, social, and governance dimensions enhances project sustainability and strengthens responses to global economic, social, and environmental challenges. A qualitative approach was employed, using a systematic literature review of publications and professional reports from 2019 to 2024, with content analysis to identify trends and patterns in environmental, social, and governance adoption within financial project management. Findings reveal that environmental, social, and governance integration improves project accountability, reduces non-financial risks such as climate change and social inequality, and shifts evaluation from short-term profitability to long-term sustainability. The study contributes to theory by providing a conceptual framework for sustainable financial scope management that positions environmental, social, and governance as a strategic, rather than administrative, consideration across the project lifecycle. It offers actionable guidance for managers, policymakers, and project stakeholders on designing financial projects that are responsible, transparent, and resilient, emphasizing adaptive governance, risk mitigation, and stakeholder engagement. These insights support the development of more sustainable investment practices and reinforce the strategic role of environmental, social, and governance in financial decision-making.
Downloads
References
Agarwal, N., Modgil, S., & Gupta, S. (2024). ESG and supply chain finance to manage risk among value chains. Journal of Cleaner Production, 1(2), 143-160.
Agustina, E. S. (2025). The influence of sustainability, governance, and financial performance on investment. Jurnal Ilmiah Manajemen Kesatuan, 13(5), 3983–3992.
Ali, M. H., Rahim, N. A., Yahya, M. H., & Kamarudin, F. (2022). Determinants of social performance efficiency of ESG and non-ESG firms: Evidence from Southeast Asian countries. Management & Accounting Review, 21(2), 212-222.
Barco, H., Oribe-Garcia, I., Vargas-Viedma, M. V., Borges, C. E., Martín, C., & Alonso-Vicario, A. (2019). New methodology for facilitating food wastage quantification. Identifying gaps and data inconsistencies. Journal of Environmental Management, 234(2), 512–524.
Bengo, I., Boni, L., & Sancino, A. (2022). EU financial regulations and social impact measurement practices: A comprehensive framework on finance for sustainable development. Corporate social responsibility and environmental management, 29(4), 809-819.
Braun, V., & Clarke, V. (2022). Conceptual and design thinking for thematic analysis. Qualitative Psychology, 9(1), 3-26.
Brezzi, M., González, S., Nguyen, D., & Prats, M. (2021). An updated OECD framework on drivers of trust in public institutions to meet current and future challenges. OECD Working Papers on Public Governance, 48(1), 51-60.
Capelli, P., Ielasi, F., & Russo, A. (2023). Integrating ESG risks into value-at-risk. Finance Research Letters, 55(1), 103-115.
Chancel, L., Bothe, P., & Voituriez, T. (2023). Climate inequality report 2023. Paris: Paris School of Economics.
Chopra, S. S., Senadheera, S. S., Dissanayake, P. D., Withana, P. A., Chib, R., Rhee, J. H., & Ok, Y. S. (2024). Navigating the challenges of environmental, social, and governance (ESG) reporting: the path to broader sustainable development. Sustainability, 16(2), 606-619.
Clark, G. L., & Dixon, A. D. (2024). Legitimacy and the extraordinary growth of ESG measures and metrics in the global investment management industry. Environment and Planning A: Economy and Space, 56(2), 645–661.
Cogilniceanu, V. (2023). The integration of ESG criteria and their role in the investment decisions of shipping companies. Pireas: University of Piraeus.
Cunha, F. A. F. D. S., Meira, E., & Orsato, R. J. (2021). Sustainable finance and investment: Review and research agenda. Business Strategy and the Environment, 30(8), 3821-3838.
Dawson, N. M., Coolsaet, B., Sterling, E. J., Loveridge, R., Gross-Camp, N. D., Wongbusarakum, S., Sangha, K. K., Scherl, L. M., Phan, H. P., & Zafra-Calvo, N. (2021). The role of indigenous peoples and local communities in effective and equitable conservation. Ecology and Society, 26(3), 19-30.
Di Battista, A., Grayling, S., Hasselaar, E., Leopold, T., Li, R., Rayner, M., & Zahidi, S. (2023). Future of jobs report 2023. World Economic Forum, Geneva, Switzerland. Retrieved on March 1, 2025, from https://www. weforum. Org/Reports/the-Future-of-Jobs-Report-2023.
Dmuchowski, P., Dmuchowski, W., Baczewska-Dąbrowska, A. H., & Gworek, B. (2023). Environmental, social, and governance (ESG) model; impacts and sustainable investment–Global trends and Poland’s perspective. Journal of Environmental Management, 329(1), 117-123.
Ferro, C., Padin, C., Høgevold, N., Svensson, G., & Sosa Varela, J. C. (2019). Validating and expanding a framework of a triple bottom line dominant logic for business sustainability through time and across contexts. Journal of Business & Industrial Marketing, 34(1), 95-116.
Folqué, M., Escrig‐Olmedo, E., & Corzo Santamaría, T. (2021). Sustainable development and financial system: Integrating ESG risks through sustainable investment strategies in a climate change context. Sustainable Development, 29(5), 876-890.
Freeman, K. M. (2025). Overlapping ownership along the supply chain. Journal of Financial and Quantitative Analysis, 60(1), 105–134.
Freeman, M., Groom, B., & Spackman, M. (2018). Social discount rates for cost-benefit analysis: a report for HM Treasury. London, UK; HM Treasury.
Friede, G. (2019). Why don’t we see more action? A metasynthesis of the investor impediments to integrate environmental, social, and governance factors. Business Strategy and the Environment, 28(6), 1260–1282.
Giese, G., Nagy, Z., & Lee, L.-E. (2021). Deconstructing ESG ratings performance: Risk and return for E, S, and G by time horizon, sector, and weighting. Journal of Portfolio Management, 47(3), 94–111.
GSIA, G. S. I. A. (2022). The value of sustainable investments in 2021. Sydney: GSIA.
Hernández, L. M., Zamudio, K. R., Drake, A. G., & Smith, M. K. (2021). Implementing team‐based learning in the life sciences: A case study in an online introductory level evolution and biodiversity course. Ecology and Evolution, 11(8), 3527–3536.
IFC. (2021). Projects that actively involve the community in planning and implementation. Washington, DC: IFC.
IFC. (2023). Developing countries that still face limited technical capacity and credible ESG data. Washington, DC: IFC.
Kokogho, E., Odio, P. E., Ogunsola, O. Y., & Nwaozomudoh, M. O. (2024). Transforming public sector accountability: the critical role of integrated financial and inventory management systems in ensuring transparency and efficiency. International Journal of Management and Organizational Research, 3(6), 84–107.
KPMG. (2022). Global Reporting Initiative (GRI) standards, and even fewer integrate these metrics. Jakarta: KPMG International.
Lamandini, M., Ramos, D., & Siri, M. (2024). The current implementation of the Sustainability-related Financial Disclosure Regulation (SFDR). California: Stockton Center for the Study of International Law.
Lame, G. (2019). Systematic literature reviews: An introduction. Proceedings of the Design Society: International Conference on Engineering Design, 1(1), 1633–1642.
Landi, G. C., Iandolo, F., Renzi, A., & Rey, A. (2022). Embedding sustainability in risk management: The impact of environmental, social, and governance ratings on corporate financial risk. Corporate Social Responsibility and Environmental Management, 29(4), 1096-1107.
Martini, A. (2021). Socially responsible investing: from the ethical origins to the sustainable development framework of the European Union. Environment, development and sustainability, 23(11), 16874-16890.
Ng, T. H., Lye, C. T., Chan, K. H., Lim, Y. Z., & Lim, Y. S. (2020). Sustainability in Asia: The roles of financial development in environmental, social and governance (ESG) performance. Social Indicators Research, 150(1), 17-44.
OECD (2019). Good governance management is an important element. Paris: OECD.
OECD (2022). European Commission through the Sustainable Finance Disclosure Regulation (SFDR) and increasing institutional investor expectations for ESG transparency. Paris: OECD.
Qamruzzaman, M., & Karim, S. (2024). Green energy, green innovation, and political stability led to green growth in OECD nations. Energy Strategy Reviews, 55(1), 101-119.
Ring, J. E. (2022). Operationalizing sustainable development, stakeholder theory, corporate social responsibility to improve community engagement outcomes. Journal of Sustainable Development, 15(1), 1-13.
Shang, M., Ma, Z., Su, Y., Shaheen, F., Mohd Tahir, L., Khalid Anser, M., & Zaman, K. (2023). Understanding the importance of sustainable ecological innovation in reducing carbon emissions: investigating the green energy demand, financial development, natural resource management, industrialisation and urbanisation channels. Economic Research-Ekonomska Istraživanja, 36(2). 77-85
Simatupang, A., Arianto, R. F., & Wibowo, A. A. (2025). Exploring bank value through ESG and ownership structure with NPL as a mediating variable in a climate-conscious context. Jurnal Ilmiah Manajemen Kesatuan, 13(4), 2827–2838.
Stefán, C. I. (2023). The world economic forum. In The Palgrave Handbook of Non-State Actors in East-West Relations (pp. 1–13). Cham: Springer.
Tao, H., Zhuang, S., Xue, R., Cao, W., Tian, J., & Shan, Y. (2022). Environmental finance: an interdisciplinary review. Technological Forecasting and Social Change, 179(1), 121-135.
Whelan, T., Atz, U., Van Holt, T., & Clark, C. (2021). ESG and financial performance. Uncovering the Relationship by Aggregating Evidence from, 1(2015-2020), 10-20.
Widyawati, L. (2020). A systematic literature review of socially responsible investment and environmental social governance metrics. Business Strategy and the Environment, 29(2), 619-637.
Willar, D., Waney, E. V. Y., Pangemanan, D. D. G., & Mait, R. E. G. (2021). Sustainable construction practices in the execution of infrastructure projects: The extent of implementation. Smart and Sustainable Built Environment, 10(1), 106-124.
Williams, M., & Moser, T. (2019). The art of coding and thematic exploration in qualitative research. International Management Review, 15(1), 45–55.
Xidonas, P., & Essner, E. (2024). On ESG portfolio construction: A multi-objective optimization approach. Computational Economics, 63(1), 21–45.
Zaharia, R. M., & Zaharia, R. (2021). Triple bottom line. The Palgrave Handbook of Corporate Social Responsibility, 1(1), 75–101.
