ESG performance and technological change: Current state-of-the-art, development and future directions

The increasing prevalence of environmental risks, the growing pressures from stakeholders and the development of ESG standards have prompted companies to embrace an environmental, social, and governance (ESG) commitment. In such a scenario, technological change and innovation are pivotal enablers to improve how companies monitor their ESG data for disclosure purposes, and significantly enhance their strategic ESG per-formance in several ways, such as by reducing emissions and environmental impact. The adoption of digital solutions for ESG performance has drawn the attention of academics and practitioners, leading to a significant increase in scientific production in the past few years. Yet, extant literature appears fragmented and scattered, despite the fast pace at which it is developing. Consequently, the present study conducts a systematic review of 89 distinct contributions ranging from 2017 to 2023, in order to acquire pertinent information regarding the current status of the topic and draw several lines for future research. The review identifies three main thematic areas, namely the use of digital technologies to enhance the transparency and reliability of ESG data tracking and reporting, the peculiarities of strategic ESG performance when it comes to high-tech companies, and the direct effects technological change has on ESG performance. The study provides a critical overview of each of the thematic areas mentioned above, along with a structured research agenda, thus contributing to the theoretical and managerial discussion on ESG performance and technological change.