Research on the Role Mechanism of ESG Governance Model in the Capital Management of Global Manufacturing Enterprises
DOI:
https://doi.org/10.70088/d2sbsc85Keywords:
ESG, Governance, Capital Management, Manufacturing, Sustainability, Investment, Risk ManagementAbstract
This review paper examines the role and mechanisms of Environmental, Social, and Governance (ESG) governance models in the capital management of global manufacturing enterprises. We synthesize extant literature to explore how ESG factors influence financial performance, investment decisions, and risk management strategies within this sector. The review encompasses a historical overview of ESG integration in manufacturing, followed by a detailed analysis of how ESG practices impact access to capital, cost of capital, and capital allocation efficiency. We further investigate the challenges and opportunities associated with implementing robust ESG governance frameworks in diverse manufacturing contexts. Through comparative analysis of different ESG governance approaches, the paper identifies best practices and proposes avenues for future research, emphasizing the importance of standardized metrics and transparent reporting to enhance the effectiveness of ESG initiatives in driving sustainable value creation for global manufacturing enterprises.References
A. Kumar, T. King, and M. Ranta, "Corporate governance characteristics and involvement in ESG activities: current trends and research directions," Corporate Governance: The International Journal of Business in Society, vol. 24, no. 8, pp. 175-209, 2024.
S. N. Kuznetsova, V. P. Kuznetsov, Z. V. Smirnova, N. S. Andryashina, and E. V. Romanovskaya, "Corporate governance in the ESG context: A new understanding of sustainability," in *Ecological Footprint of the Modern Economy and the Ways to Reduce It: The Role of Leading Technologies and Responsible Innovations*, Cham: Springer Nature Switzerland, 2024, pp. 53-57.
L. K. David, J. Wang, V. Angel, and M. Luo, "Environmental commitments and innovation in China's corporate landscape: an analysis of ESG governance strategies," Journal of Environmental Management, vol. 349, 119529, 2024.
O. Mooneeapen, S. Abhayawansa, and N. Mamode Khan, "The influence of the country governance environment on corporate environmental, social and governance (ESG) performance," Sustainability Accounting, Management and Policy Journal, vol. 13, no. 4, pp. 953-985, 2022.
Y. Yu, L. Wang, Y. Wu, J. Z. Zhang, H. Li, and Y. Zhang, "How ESG governance affects total factor productivity: Evidence from Chinese listed companies," Environmental Impact Assessment Review, vol. 116, 108074, 2026.
U. Anathole, C. Limei, and F. Hamza, "Navigating corporate greenwashing in the carbon era: synergizing internal carbon pricing, ESG governance, and regulatory stringency to advance environmental integrity," Corporate Social Responsibility and Environmental Management, 2025.
P. Câmara, "The systemic interaction between corporate governance and ESG," in The Palgrave Handbook of ESG and Corporate Governance, Cham: Springer International Publishing, 2022, pp. 3-40.
T. T. Yeh, Y. Xiao, and S. J. Daniel, "Stakeholder influences on management control systems for ESG governance and reporting in the global automotive industry," Journal of Corporate Accounting & Finance, vol. 35, no. 2, pp. 103-120, 2024.
R. Müller, M. A. Caron, N. Drouin, J. Lereim, R. Alonderienė, A. Chmieliauskas, ... and R. Šuminskienė, "Governance of ESG implementations: governance dimensions and their structural implementation," International Journal of Managing Projects in Business, vol. 18, no. 1, pp. 118-138, 2025.
A. Tan, "The integrated ESG pathways model: advancing ESG governance in pluralistic legal systems," Available at SSRN 5170737, 2024.
Z. Baharom, "The role of internal audit in ESG governance: a conceptual framework," International Journal of Research and Innovation Social Science, vol. IX (2454), pp. 947-953, 2025.
K. Albitar, K. Hussainey, N. Kolade, and A. M. Gerged, "ESG disclosure and firm performance before and after IR: the moderating role of governance mechanisms," International Journal of Accounting & Information Management, vol. 28, no. 3, pp. 429-444, 2020.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Xiaowu Huang (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
