Purpose This study reviews the economic consequences of firms' Environmental, Social, and Governance (ESG) practices. Unlike previous reviews that treat ESG as a monolithic concept, this paper employs the European Sustainability Reporting Standards (ESRS) framework to systematically examine how different ESG topics generate distinct economic impacts. Design/methodology/approach A three-stage systematic review was conducted using Scopus database searches combined with manual screening of top accounting journals. The search strategy incorporated topic-specific terms for nine ESRS categories (five environmental and four social topics) combined with economic consequence indicators. Quality screening based on the ABDC journal list yielded a final sample of 90 papers from 25 accounting journals spanning 2005–2025. Findings The review reveals substantial disparities in research attention across ESG topics. Climate change, consumers, and the own workforce dominate the literature, with these three dimensions accounting for the vast majority of studies examined. Critically, biodiversity and circular economy have received no empirical examination of economic consequences in accounting literature, while water, affected communities, and workforce in the value chain remain severely under-researched. The geographic concentration in U.S. studies and methodological limitations constrain generalizability. The mechanisms translating ESG practices into economic value remain largely unexplored. Originality/value This is the first systematic review to disaggregate ESG economic consequences using the ESRS framework, revealing differential impacts across specific sustainability topics. The study identifies critical research gaps, particularly in neglected topics, and provides a roadmap for future research as mandatory ESG disclosure expands globally.
Luo et al. (Wed,) studied this question.