Challenges and Opportunities in ESG Reporting: A Systematic Review of Literature From Emerging Markets

This research paper provides a comprehensive, systematic review of Environmental, Social, and Governance (ESG) reporting practices in emerging market economies from 2019 to 2024. The study synthesizes findings from various recent sources to elucidate the key themes, challenges, and trends in ESG reporting within these regions. The analysis highlights the significant influence of board characteristics, such as independence and gender diversity, on ESG disclosures. It also explores the theoretical frameworks employed in understanding ESG reporting, including stakeholder, legitimacy, and institutional theories. Despite advancements, the paper identifies several persistent challenges in emerging markets, including inconsistent regulatory frameworks, data quality and reliability issues, and limited awareness and expertise in ESG practices. Regional insights reveal varying degrees of ESG adoption and reporting quality across Latin America, Asia, Africa, and the Middle East, with specific socio-economic and cultural factors influencing these variations. The paper suggests strengthening regulatory frameworks, enhancing data infrastructure, and providing capacity-building initiatives to address these gaps. It also underscores the need for increased market incentives to encourage more robust ESG disclosures. The findings and recommendations contribute to the ongoing discourse on improving ESG reporting standards and practices in emerging markets, ultimately fostering greater transparency, accountability, and sustainable development. The selected timeframe (2019–2024) includes the most recent advancements, reflecting ongoing trends and emerging insights in AI and business analytics.