## 2 Literature Review
This complexity underscores the necessity for standardized metrics to measure environmental performance effectively and comparably. Despite stakeholder engagement and increased transparency, the absence of clear and objective criteria can lead to greenwashing [57]. Discrepancies in ESG ratings reveal conceptual and comparability issues [46]. Therefore, the implementation of more objective metrics and regulatory guidelines can enhance rating reliability and promote conceptual consistency. The lack of relevant IT tools/systems to enhance the management of ESG practices is a challenge highlighted by [26]. The scarcity of comprehensive technological applications leads to manual processes and limited data sharing. Advanced technologies such as blockchain, big data, and artificial intelligence could enhance ESG reporting by increasing transparency, communication, and data traceability [31], thereby drastically reducing time and costs. The lack of low-carbon technologies poses a challenge to global energy systems, given the dwindling fossil fuel resources and climate change. Insufficient investment and a scarcity of sustainable sources such as nuclear and solar energy hinder the transition to renewable sources, creating a deadlock between energy production and conservation [58; 59; 60]. The lack of organized waste management is a challenge for ESG principles. Inefficient handling can result in environmental, social, and governance impacts, undermining efforts toward sustainable practices. The absence of adequate systems for collection, recycling, and responsible disposal can lead to pollution, health risks, and regulatory violations. Therefore, it is essential for companies to adopt robust waste management strategies as part of their ESG initiatives, aiming to reduce their impact and promote sustainable development [61; 62]. Another challenge is the difficulty with information management. Ref. [53] emphasized the need to increase transparency through robust communications and meaningful interaction with stakeholders. This involves developing clear and standardized reports, disclosing relevant environmental data, and comprehensively communicating performance. Active stakeholder engagement implies seeking their contribution, incorporating feedback, and involving them in environmental decisions. According to [18], studies have investigated how transparency and ESG disclosure impact investments, finding that more ESG disclosure enhances business value. However, the lack of clarity and information management complicates proper analysis of ESG implications, affecting sustainability and potentially causing conflicts between managers and stakeholders. To mitigate this asymmetry, companies use various disclosure instruments, such as integrated and sustainability reports. According to [33], ESG disclosure practices are evolving, but many companies still do not disclose their sustainability progress. About one in ten companies chooses recognized reporting, while most report informally due to global pressure, competition, and management preferences. However, without mandatory requirements, this can lead to selective reporting and difficulties in data comparison. The lack of carbon offset strategies poses a challenge to the effective implementation of ESG principles. While actions such as transitioning to renewable energy, recycling, and reforestation aim to reduce emissions, carbon credits do not always result in real reductions. Carbon-neutral initiatives can have negative economic and environmental impacts, complicating ESG goals [63; 64]. According to [58], carbon neutrality offers a compensatory mechanism, but inadequate compensation poses a barrier to implementing ESG principles. Ref. [29] highlighted that among the barriers identified is the lack of options for ESG benchmarking. Without standardized metrics, it is challenging to consistently compare and evaluate companies' ESG performance. This hinders the identification of areas for improvement and realistic goal-setting, impacting transparency and accountability.