A new pathway to sustainability: Integrating economic dimension (ECON) into ESG factors as (ECON-ESG) and aligned with sustainable development goals (SDGs)

Abstract

The concept of traditional ESG (Environmental, Social, Governance) factors is a sine qua non for sustainability and constitutes the cornerstones of a sustainable economy. However, although the inevitable impacts of economic activities on sustainability, it lacks the economic dimension (denotes ECON). Therefore, this study proposes to complete this missing leg, integrate economics into ESG, and obtain and introduce ECON-ESG as a composite sustainability concept. While ESG represents firm and microeconomics-based sustainability based only on environmental, social, and governance factors, ECON-ESG also incorporates the economy and represents sustainability, including macroeconomics affecting the firm's performance. Additionally, the linkage between ECON-ESG and SDGs will provide scholars with a composite form variable for use in sustainability models.