The Degree of Readiness in Practicing ESG Concepts in Higher Learning Institutions

Abstract

Environmental, Social and Governance (ESG) emerged as one of the competitive strategies, especially after the world experienced financial turbulence due to the pandemic. The unprecedented situation raises alarm in managing risks, and an increasing number of organisations choose sustainability as their agenda to grow. Most banks started implementing ESG due to its risk management capability, and the concept captured most of the investors’ attention.  ESG is seen as a strategy opted for Corporate Financial Performance, and few were seen in higher learning institutions due to the nature of education. Thus, this study is aimed to examine the understanding of ESG concepts in higher learning institutions apart from identifying the degree of readiness upon ESG concepts and the strategies in dealing with the readiness. The current study adopted the Society of Automotive Engineers (SAE) J4000 standard model that is duly modified to meet the needs of educational practice. Quantitative descriptive analysis is used to analyse the data collected from several higher learning institutions. Based on the previous studies, it is expected that the degree of readiness varies based on the respondents’ background knowledge, designation, goals, and strategy of the institution. The current study could lead to significant findings of ESG implementation in higher learning institutions.