Integrating ESG factors into business strategy: Implications for corporate governance and financial reporting
Published: July 25, 2026
Abstract
This study explores the integration of Environmental, Social, and Governance (ESG) strategies into corporate operations, with a particular focus on their implications for financial and managerial accounting. Utilizing qualitative research and document analysis, the study finds that embedding ESG considerations into business strategy generates long-term advantages, including improved competitiveness, strengthened stakeholder trust, and reduced operational and reputational risks. However, several challenges persist, such as inconsistencies in data accuracy, comparability, the absence of uniform reporting standards, and the limited assurance of ESG-related information. To address these issues, the study examines international sustainability reporting frameworks, with particular attention to the IFRS standards issued by the International Sustainability Standards Board (ISSB), as a pathway toward standardized and reliable ESG disclosures.
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