Journal of Applied Finance & Banking

Environmental, Social, and Governance Sustainability Initiatives in Saudi Arabia: A Review

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• Abstract

   

  This research is to review the environmental, social, and governance (ESG) adoption and implementation using systematic literature review methodology. Based on the review, it was identified that in organizations, ESG performance is essential for investors, firm managers, and stakeholders. Environmental stability is associated with the practices performed to decrease the impact of businesses or organizations in the surrounding. In addition, environmental stability is associated with a range of initiatives such as resource-efficient production and formulation of eco friendly products. Comparably, social sustainability relates to practices that respect human rights and contribute toward employee, customer, and community welfare. The practices can include investing in community development, having fair labor practices, and developing products and services that have a positive impact on society. Governance sustainability has been enhanced through the Saudi Vision 2030 and Saudi Exchange. Although Saudi Arabia has implemented significant initiatives for ESG sustainability, additional strategies are needed to improve the Performance. It is indispensable for companies and organizations to undertake more sustainable, responsible, and well-governed actions.

   

  JEL classification numbers: M14.

  Keywords: Governance sustainability, Social sustainability, Environmental sustainability, Vision 2030.