ESG Measurement Issues, Governance and Incentives

Firms must focus on sustainability topics relevant to their business model, determined through internal analysis and stakeholder engagement. Materiality varies across industries, influencing decarbonization strategies. New EU regulations like the CSRD drive firms to improve ESG metrics, but challenges remain in measuring sustainability impact. Researchers should explore ESG-financial trade-offs and reporting dilemmas. Collaboration between firms, regulators, and academia is key to advancing sustainability efforts.