## 2 Literature Review
Therefore, it is important to develop a standardized reporting framework that allows for scalability and comparability of information. The implementation of Industry 4.0 technologies can overcome this gap by providing real-time data, authentication, forecasting, transparency, and data structuring. According to [48], information disclosed by companies in Australia varies in content, scope, and complexity, making it difficult to assess environmental performance. Inconsistencies in ESG data across industrial sectors, regions, and countries impair investor assessments due to a lack of uniformity. Additionally, accessing data on companies in emerging economies is a challenge, as pointed out by [49]. Much ESG data are collected through corporate disclosures, which tend to favor larger, publicly listed companies subject to disclosure requirements that vary between countries. The lack of innovation stimulus, incentives, investment, rewards, government support in ESG practices, or fiscal incentives or subsidies for investments is a challenge addressed by [50]. They propose regulatory interventions to facilitate ESG information disclosure, aiming for more efficient capital allocation and reduced corporate financing costs. It is crucial to encourage and regulate companies to disclose consistent ESG information. Ref. [51] highlighted that ESG reporting standards could be consolidated through government requirements, although a global standard is currently unlikely. The lack of government action has allowed private organizations to simplify ESG reporting. Additionally, ref. [52] suggests that incentivizing green technological innovation can enhance ESG performance in companies. However, high investment costs can be a barrier, especially for small and medium-sized enterprises. Therefore, governments should create an environment conducive to digital transformation and promote policies that encourage innovation to meet ESG requirements. The lack of internal organizational integration, as mentioned by [1], involves internal pressures and demands from employees. It is important to ensure good working conditions and well-being to promote employee engagement. On the other hand, ref. [53] emphasizes the importance of integrating environmental performance within the broader context of ESG, allowing for a comprehensive understanding of the interrelationships between these dimensions. Addressing only environmental issues is insufficient because there is interdependence among ESG factors. Social issues, such as community engagement and human rights, impact environmental performance. Additionally, governance practices and transparency affect environmental risk management. This integrated approach allows for a balanced assessment of an organization's sustainability performance, demonstrating commitment to responsible business conduct and aligning ESG objectives. Finally, ref. [54] highlights that integrating financial and non-financial reporting is a challenge, making it difficult for investors to understand the interdependence of financial and non-financial aspects in creating value for a company. The lack of partnerships in the supply chain regarding ESG actions is a significant challenge. According to [23], a study in the wood products and furniture industry in Malaysia highlighted challenges with ESG practices, including a lack of awareness and non-compliance among partners in the supply chain. Many of these partners are small businesses without ESG awareness and financial resources to implement such practices, reflecting the difficulties faced by the global wood products and furniture industries in meeting increasing ESG requirements [55]. The challenge of objectively assessing ESG factors is highlighted by [56], who discusses the importance of ESG materiality for companies in Latin America, emphasizing the need to prioritize issues relevant to stakeholders. These companies encounter specific challenges, such as corruption and bribery in environmental licensing, which impact natural resource management.