From policy to practice – a systematic review of ESG integration in Malaysia’s higher education sector for strategic sustainability transformation

Purpose The increasing worldwide focus on environmental, social and governance (ESG) principles has compelled higher education institutions (HEIs) to re-evaluate their strategic responsibilities in promoting sustainable development. In Malaysia, the shift from ESG policy frameworks to institutional implementation is uneven and fragmented. Design/methodology/approach This systematic literature review (SLR) consolidates 26 peer-reviewed studies published from 2020 to 2025 to critically analyse the integration of ESG principles by Malaysian higher education institutions across five thematic domains – policy and institutional commitment, curriculum integration, campus operations, stakeholder engagement and governance and reporting. Findings Results indicate that while institutional knowledge of ESG has grown, its implementation often suffers from inconsistency, insufficient theoretical foundation and a lack of national standards. Principal issues include restricted curricular integration, variable environmental practices, superficial stakeholder engagement and disjointed reporting systems. The assessment reveals considerable demographic deficiencies, notably the underrepresentation of private and rural colleges and underscores the lack of customized ESG guidelines for the Malaysian higher education sector. Practical implications This paper advocates for strategic, theory-based and contextually adaptable ESG integration to facilitate Malaysia’s comprehensive sustainable transition. By integrating national educational reforms with ESG principles, higher education institutions may act as catalysts for systemic and inclusive sustainability progress. This report provides practical insights for politicians, educators and institutional leaders aiming to close the gap between policy and practice in ESG adoption. Originality/value This study is the first SLR to critically examine the integration of ESG principles within Malaysia’s higher education sector through a structured thematic synthesis of 26 peer-reviewed publications from 2020 to 2025. Unlike previous works that focus narrowly on sustainability education or isolated campus initiatives, this review holistically maps ESG practices across five core domains – policy, curriculum, operations, stakeholder engagement and reporting – while uncovering theoretical, practical and population-level gaps. By focusing specifically on the Malaysian context, the study provides region-specific insights that are often underrepresented in global ESG discourse. The originality of this paper lies in its framework-driven synthesis and cross-theme evaluation, which collectively offer actionable recommendations for institutional leaders, policymakers and academics aiming to bridge the policy–practice divide in ESG adoption. The value of this work extends beyond scholarly contribution; it provides a strategic lens to support Malaysia’s higher education institutions in aligning with national sustainability goals and global benchmarks such as the United Nations Sustainable Development Goals.