Toward a Multi-Dimensional ESG Framework for Enhancing Firm Value in Commercial Banks: A Systematic Literature Review

Abstract

Environmental, Social, and Governance (ESG) has become a prominent issue in the banking sector due to the increasing emphasis on sustainability and responsible finance. This study aims to systematically review the literature on the relationship between ESG and firm value in the banking sector and identify research trends, gaps, and future research directions. The study follows the PRISMA guidelines for article identification and selection using the scopus database. In addition, bibliometric analysis was conducted using VOSviewer to map publication trends, dominant themes, and the intellectual structure of ESG and firm value research. The findings indicate a significant increase in publications during the 2020-2025 period, with major themes focusing on ESG, financial performance, corporate governance, and sustainability. ESG has been operationalized through various dimensions, including ESG disclosure, ESG performance, ESG score, sustainability reporting, and CSR expenditure. While most studies report a positive association between ESG and firm value, inconsistencies in findings and limited consideration of mediating and moderating variables remain evident. Therefore, this study proposes a Multi-Dimensional ESG Framework to guide future research and support the development of sustainable business practices in the banking industry.