The role of information systems in controlling and monitoring ESG performance. Evidence from an empirical study

Over the past decade, sustainability researchers have broadened their focus to examine the role of management control in the implementation of sustainability strategies. Many scholars and practitioners argue that the effective pursuit of environmental, social and governance (ESG) strategies requires robust data collection, processing and management, as well as careful monitoring of ESG targets. In this context, the information system plays a central role. This paper contributes to this emerging area of interest by investigating the role of information systems in supporting ESG strategy development and performance monitoring. A qualitative case study was conducted to analyze a software designed to collect and monitor ESG data. The findings suggest that the information system has played an increasingly important role in integrating ESG issues into performance measurement and control systems. Furthermore, the use of ESG data collection and analysis software enhances the reporting capabilities of ESG performance measurement tools. The theoretical contributions of this study enrich the literature on ESG strategy and performance measurement. In addition, the practical findings provide empirical evidence to help managers understand how technological tools are used by companies to effectively address ESG issues.