Document Type
Article
Abstract
Introduction:
The 2020-2024 period represents a regulatory transformation era in ESG research, marked by mandatory disclosure frameworks (CSRD/ESRS, SEC climate rules, ISSB standards) replacing voluntary approaches. This creates a natural experiment for examining ESG-performance relationships under compulsory reporting. Despite extensive voluntary-period literature, limited research addresses how mandatory frameworks alter these relationships during regulatory transformation.
Methods:
We conducted a systematic thematic review following PRISMA 2020 guidelines (INPLASY202570105). Comprehensive database searches (2020–2024) yielded 4,441 records; after screening (Cohen's κ = 0.89), 17 high-quality studies met inclusion criteria (12 primary search, 5 ESRS-specific supplementary search). Thematic analysis identified ten interconnected themes grounded in Dynamic Materiality Theory, Institutional Theory, and Stakeholder Theory, examining evidence across European, North American, and Asia-Pacific contexts.
Results:
Three dominant themes emerged (≥59% prevalence): Performance Relationships, Mandatory Disclosure, and Methodological Evolution. ESG-performance relationships showed mixed findings under mandatory disclosure, with positive effects more pronounced in carbon-intensive sectors and European contexts. ESRS implementation revealed preparedness gaps: only 37% of EU companies fully ready, with large firms (68%) substantially outpacing medium enterprises (23%). Financial services, energy, and manufacturing showed higher preparedness (5872%) vs. retail, hospitality, and technology (2834%). Studies connected primarily to SDG 12 (n = 12), SDG 16 (n = 11), and SDG 13 (n = 6).
Discussion:
Mandatory disclosure fundamentally alters ESG-performance relationships through standardization, harmonization, measurement convergence, and sector-specific adaptation. Findings extend Dynamic Materiality Theory by demonstrating how regulatory mandates shift stakeholder salience to external compliance requirements. The review provides insights for regulators coordinating global taxonomy alignment, firms preparing graduated implementation strategies, and investors adapting screening models. Limitations include early-phase timeframe, modest sample size (n = 17), European dominance, and English-only sources. Future research should examine longitudinal ESRS effects, ESRS-ISSB comparative implementation, and emerging market perspectives.
Digital Object Identifier (DOI)
Publication Info
Published in Volume 6, 2026.
Rights
© 2026 Kim and Yang.
This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
APA Citation
Kim, J., & Yang, W. (2026). ESG performance in the regulatory transformation era: a systematic thematic review (2020–2024). Frontiers in Sustainability, 6.https://doi.org/10.3389/frsus.2025.1680398