ESG as a Strategic Asset in Emerging Markets: A Case Study of Renewable Energy Technology Transfer and Marketing

Authors

  • Yue Ma

    School of International Business, Beijing University of Financial Technology, Beijing 101118, China

DOI:

https://doi.org/10.30564/jees.v8i8.13284
Received: 15 March 2026 | Revised: 6 May 2026 | Accepted: 15 May 2026 | Published Online: 11 August 2026

Abstract

Environmental, social, and governance (ESG) considerations are increasingly framed as sources of competitive advantage. Yet evidence remains fragmented on how ESG creates strategic value in emerging markets where institutional uncertainty, stakeholder contestation, and financing constraints shape renewable energy deployment. This review conceptualizes ESG as a strategic resource, an embedded competency that improves project administration, validity, and learning practices, and reviews the role of ESG in renewable energy technology transfer and downstream marketing/commercialization results. By combining findings on resource-based view, institutional theory, stakeholder theory, signaling, and technology transfer, we come up with an explicatory pathway between ESG maturity and partner selection, choice of transfer mode, bankability, absorptive capacity, and lifecycle performance. We also relate the outcome of operations to market-facing processes, as the argument is that ESG influences tender eligibility, cost of capital, ecosystem coordination, and adoption through lower perceived risk and an increase in credibility among regulators, financiers, communities, and buyers. The comparison of a case of China and Germany demonstrates two prevailing ways: an execution-centered way in which ESG builds value by reliability and reduction of disruption, and a verification-centered way in which ESG builds value by safeguards, standards, and credible signaling. At cross-pathways, the strategic usefulness of ESG relies on local fit as well as on how the commitments can be converted into quantifiable results like transfer of skills, development of suppliers, affinity of communities, and reliable energy supply. Managerial and policy implications and a research agenda are concluded at the end of the review in the form of causal identification, longitudinal design, and distributional just transition outcomes in contexts of emerging markets.

Keywords:

ESG; Emerging Markets; Renewable Energy; Technology Transfer; Marketing Commercialization

References

[1] Gözlügöl, A.A., 2022. LawFin Working Paper, No. 25: The Clash of 'E'and 'S'of ESG: Just Transition on the Path to Net Zero and the Implications for Sustainable Corporate Governance and Finance. Goethe University, Center for Advanced Studies on the Foundations of Law and Finance (LawFin), Frankfurt am Main, Germany.

[2] Kandpal, V., Jaswal, A., Santibanez Gonzalez, E.D.R., et al., 2024. Sustainable energy transition, circular economy, and ESG practices. In Sustainable Energy Transition: Circular Economy and Sustainable Financing for Environmental, Social and Governance (ESG) Practices. Springer: Cham, Switzerland. pp. 1–51.

[3] Arenas, I.V., Trujillo, D.M., Rojas, C., 2024. Towards Sustainable Solutions: Advancing ESG metrics in the Renewable Energy Sector. Latin American Journal of Trade Policy. 7(19).

[4] Richardson, B.J., 2009. Climate finance and its governance: Moving to a low carbon economy through socially responsible financing? International & Comparative Law Quarterly. 58(3), 597–626.

[5] Asif, M., Muneer, T., 2007. Energy supply, its demand and security issues for developed and emerging economies. Renewable and Sustainable Energy Reviews. 11(7), 1388–1413.

[6] Kraievskyi, V., Polishchuk, S., 2025. Transformation of transfer pricing policy in the context of ESG-oriented business strategies. Економіка розвитку систем. 7(1), 42–49.

[7] Chen, K., 2024. Strategies for Integrating ESG into a Large Organization-Case Study of a Large-Scale Chinese High-Tech Manufacturing Enterprise [Master's Thesis]. University of York: York, UK.

[8] Solimene, S., Coluccia, D., Fontana, S., et al., 2025. Formal Institutions and Voluntary CSR/ESG Disclosure: The Role of Institutional Diversity and Firm Size. Corporate Social Responsibility and Environmental Management. 32(4), 5147–5166

[9] Arieftiara, D., Widyastuti, S., Masripah, M., et al., 2025. The Role of Largest Ownership Structure in ESG Reporting, Tax Avoidance, and Firm Value: Evidence from Emerging Markets. Qubahan Academic Journal. 5(2), 293–321.

[10] Bani-Khaled, S., Azevedo, G., Oliveira, J., 2025. Environmental, social, and governance (ESG) factors and firm value: A systematic literature review of theories and empirical evidence. AMS Review. 15, 228–260.

[11] Rehman, A.U., Iqbal, A., 2025. ESG Disclosure under Regulatory Transition: Regulatory Design and Firm Behavior in Pakistan. Center for Management Science Research. 3(8), 285–301.

[12] Alves, I.R., Mesquita, E., Caneppele, N.R., et al., 2025. Beyond practicing: Understanding the influence of ESG perceptions on employee retention. Management Research: Journal of the Iberoamerican Academy of Management. 23(3), 260–282.

[13] Judijanto, L., 2025. Bibliometric Analysis of Dividend Policy and Firm Value. The Eastasouth Management and Business. 4(1), 14–23.

[14] Sultana, N., Zeya, F., 2025. Advancing firm‐specific ESG sentiment analysis: A machine learning approach to clustering, prediction, and financial performance implications. Business Strategy & Development. 8(3), e70150.

[15] Tarczynska-Luniewska, M., Maciukaite-Zviniene, S., Nareswari, N., et al., 2024. Analysing the complexity of ESG integration in emerging economies: An examination of key challenges. In: Grima, S., Maditinos, D., Noja, G.G., et al. (Eds.). Exploring ESG Challenges and Opportunities: Navigating towards a Better Future, Vol. 116. Emerald Publishing Limited: Leeds, UK. pp. 41–60.

[16] Yucel, M., Yucel, S., 2024. Environmental, Social, and Governance (ESG) Dynamics in the Energy Sector: Strategic Approaches for Sustainable Development. Energies. 17(24), 6291.

[17] Schick-Makaroff, K., MacDonald, M., Plummer, M., et al., 2016. What synthesis methodology should I use? A review and analysis of approaches to research synthesis. AIMS Public Health. 3(1), 172–215.

[18] Yang, J., Zuo, Z., Li, Y., et al., 2024. Manufacturing enterprises move towards sustainable development: ESG performance, market-based environmental regulation, and green technological innovation. Journal of Environmental Management. 372, 123244.

[19] Twyford, J.C., 2023. Strategic Alliances in the Renewable Energy Sector: The Effects of Governance Choice and ESG Performance [PhD Thesis]. University of Manchester: Manchester, UK.

[20] Pérez, H.A.Á., 2024. ESG: Facilitating Organizational Pathways through the Energy Transition [PhD Thesis]. EGADE Business School, Instituto Tecnologico y de Estudios Superiores de Monterrey: Monterrey, Mexico.

[21] Chipimo, M.L., Bwalya, J., Kanyanga, J.K., 2025. The Role of ESG in Driving Firm Profitability: Implications for Stakeholder, Resource-Based View, and Triple Bottom Line Theories in Emerging Markets. SEISENSE Journal of Management. 8(1), 119–131.

[22] Zioło, M., Bąk, I., Spoz, A., 2023. Theoretical framework of sustainable value creation by companies. What do we know so far? Corporate Social Responsibility and Environmental Management. 30(5), 2344–2361.

[23] da Cunha, Í.G.F., Policarpo, R.V.S., de Oliveira, P.C.S., et al., 2025. A systematic review of ESG indicators and corporate performance: Proposal for a conceptual framework. Future Business Journal. 11(1), 106.

[24] Goncalves, M., 2024. Global Markets, Diverse Economies: Integrating Economics, Culture and ESG Strategies. Walter de Gruyter GmbH & Co KG: Berlin, Germany.

[25] Lokuwaduge, C.S.D.S., Heenetigala, K., 2017. Integrating environmental, social and governance (ESG) disclosure for a sustainable development: An Australian study. Business Strategy and the Environment. 26(4), 438–450.

[26] Camilleri, M.A., 2015. Environmental, social and governance disclosures in Europe. Sustainability Accounting, Management and Policy Journal. 6(2), 224–242.

[27] Hoang, T., 2018. The role of the integrated reporting in raising awareness of environmental, social and corporate governance (ESG) performance. In: Seifi, S., Crowther, D. (Eds.). Stakeholders, Governance and Responsibility. Emerald Publishing Limited: Leeds, UK. pp. 47–69.

[28] Marquis, C., Raynard, M., 2015. Institutional strategies in emerging markets. Academy of Management Annals. 9(1), 291–335.

[29] Tracey, P., Phillips, N., 2011. Entrepreneurship in emerging markets: Strategies for new venture creation in uncertain institutional contexts. Management International Review. 51(1), 23–39.

[30] Ahmad, F., Boumaiza, A., Sanfilippo, A., et al., 2025. A comprehensive review on green finance and its impact on net zero energy transition: From the perspective of renewable energy development. Energy Strategy Reviews. 62, 101948.

[31] Arun, T., Girardone, C., Piserà, S., 2022. ESG issues in emerging markets and the role of banks. In: Nguyen, D.K. (Ed.). Handbook of Banking and Finance in Emerging Markets. Edward Elgar Publishing: Leeds, UK. pp. 321–344.

[32] Sherwood, M.W., Pollard, J.L., 2018. The risk-adjusted return potential of integrating ESG strategies into emerging market equities. Journal of Sustainable Finance & Investment. 8(1), 26–44.

[33] de Oliveira Santos Jhunior, R., dos Santos Costa, L., Uchoa, M.T., et al., 2025. State Influence on ESG Performance in Emerging Markets: A Study of Institutional Roles. Business Strategy & Development. 8(1), e70078.

[34] Hu, A., Yuan, X., Fan, S., et al., 2023. The impact and mechanism of corporate ESG construction on the efficiency of regional green economy: An empirical analysis based on signal transmission theory and stakeholder theory. Sustainability. 15(17), 13236.

[35] Whitelock, V.G., 2015. Relationship between Environmental Social Governance (ESG) Management and Performance—The Role of Collaboration in the Supply Chain [PhD Thesis]. University of Toledo: Toledo, OH, USA.

[36] Yadav, U.S., Ghosal, I., Pareek, A., et al., 2024. Impact of entrepreneurial orientation and ESG on environmental performance: Moderating impact of digital transformation and technological innovation as a mediating construct using Sobel test. Journal of Innovation and Entrepreneurship. 13(1), 86.

[37] Yu, P., Zuo, Z., Lian, D., 2024. Fostering high-quality corporate development through ESG-driven technological innovation: A moderated mediation analysis. Journal of the Knowledge Economy. 16, 19054.

[38] Hou, Z., Li, D., Jin, F., et al., 2025. Green supply chain knowledge networks and corporate ESG performance: The role of green technology innovation and knowledge integration capability. International Journal of Production Research. 63(12), 4306–4327.

[39] Shi, D., Song, Y., 2025. Fostering sustainable inter-sectoral linkages and pathways through ESG performance: A novel integrated input–output analysis. Environment, Development and Sustainability. DOI: https://doi.org/10.1007/s10668-025-07056-9

[40] Wang, Y., Wang, D.D., 2025. The dual path of the impact of digital technology adoption on ESG performance. Sustainability. 17(6), 2341.

[41] Peng, X., 2025. Exploring the synergistic effect of ESG-driven environmental policies and the cross-regional linkage mechanism. Academic Journal of Environment & Earth Science. 7(2), 38–46.

[42] Chaturvedi, A., 2024. Modelling Sustainable Projects: Investigating ESG Indicators through Virtual Reality Model [Master's Thesis]. Metropolia University of Applied Sciences: Vantaa, Finland; Hochschule für Technik und Wirtschaft Berlin: Berlin, Germany.

[43] Powers, J., 2024. How Marketing Executives Use Social Media to Manage Reputation, Performance, CSR, and ESG [PhD Thesis]. Capella University: Minneapolis, MN, USA.

[44] Sheehan, N.T., Vaidyanathan, G., Fox, K.A., et al., 2023. Making the invisible, visible: Overcoming barriers to ESG performance with an ESG mindset. Business Horizons. 66(2), 265–276.

[45] Masconale, S., 2024. ESG and Boundary Risks: A Social Welfare Approach. European Business Law Review. 35(3/4), 551–576.

[46] Shi, Y., Yao, T., 2025. ESG Rating Divergence: Existence, Driving Factors, and Impact Effects. Sustainability. 17(10), 4717.

[47] Hu, X., Lyu, W., Zhang, R., 2024. Use cross-border M&As to build innovation ecosystems: ESG practices, governmental control, and EMNEs' green technological innovation. International Journal of Technology Management. 96(1–3), 6–34.

[48] Ockwell, D.G., Watson, J., MacKerron, G., et al., 2008. Key policy considerations for facilitating low carbon technology transfer to developing countries. Energy Policy. 36(11), 4104–4115.

[49] Chen, Z., Yang, J., Li, P., et al., 2024. Navigating the knowledge economy: Unraveling the impact of executive policy cognition on ESG performance in China’s a-share listed companies. Journal of the Knowledge Economy. 15(4), 15788–15832.

[50] Karakosta, C., Doukas, H., Psarras, J., 2010. Technology transfer through climate change: Setting a sustainable energy pattern. Renewable and Sustainable Energy Reviews. 14(6), 1546–1557.

[51] Valiyeva, M., 2024. Mergers and Acquisitions Lifecycle through the Lens of Sustainable Development [Master's Thesis]. Uppsala University: Uppsala, Sweden.

[52] Hou, D., Liu, Z., Zahid, R.M.A., et al., 2025. ESG dynamics in modern digital world: Empirical evidence from firm life-cycle stages. Environment, Development and Sustainability. 27(6), 12325–12350.

[53] Sun, Y., Liao, C., Chen, Y., et al., 2025. The impacts of ESG policy on clean technology innovation: A gateway to promote renewable energy transition. Clean Technologies and Environmental Policy. 27(6), 2305–2319.

[54] Engel-Cox, J.A., Wikoff, H.M., Reese, S.B., 2022. Techno-economic, environmental, and social measurement of clean energy technology supply chains. Journal of Advanced Manufacturing and Processing. 4(3), e10131.

[55] Borowiec, L., Heryszek, T., 2025. Impact of ESG Risks on Bank Financing Business. European Research Studies Journal. 28(2), 577–594.

[56] Tan, W., Liu, Y., Shen, M., et al., 2025. ESG reputation risk and corporate investment and financing maturity mismatch: Evidence from ESG news sentiment. Journal of Accounting Literature. DOI: https://doi.org/10.1108/JAL-07-2024-0166

[57] Stan, S.E., Țîțu, A.M., Mănescu, G., et al., 2023. Measuring supply chain performance from ESG perspective. DOI: https://dx.doi.org/10.2139/ssrn.5093491

[58] Zhang, C., Jin, S., 2022. What drives sustainable development of enterprises? Focusing on ESG management and green technology innovation. Sustainability. 14(18), 11695.

[59] Ren, L., Gao, S., Yang, F., 2025. ESG performance, supply chain relationship stability and enterprise technology innovation. Industrial Management & Data Systems. 125(5), 1892–1914.

[60] Yu, P., Chen, Y., Zhao, Y., 2025. Overcoming the ESG Voids at Home: Supplier ESG Performance and the Internationalization of Emerging Market Multinational Enterprises. Management International Review. 65(2), 359–395.

[61] Annesi, N., Battaglia, M., Ceglia, I., et al., 2025. Navigating paradoxes: Building a sustainable strategy for an integrated ESG corporate governance. Management Decision. 63(2), 531–559.

[62] Cloke, J., Mohr, A., Brown, E., 2017. Imagining renewable energy: Towards a Social Energy Systems approach to community renewable energy projects in the Global South. Energy Research & Social Science. 31, 263–272.

[63] Asif, M., Searcy, C., Castka, P., 2023. ESG and Industry 5.0: The role of technologies in enhancing ESG disclosure. Technological Forecasting and Social Change. 195, 122806.

[64] Jahanbakhsh, E., 2026. Strategic Integration of Digital Innovation and Sustainability: A Foresight-Driven Framework for ESG Transformation. Social Sciences & Humanities Open, 13, 102795.

[65] Morris, M., 2023. Chinese Firms and Adherence to Global Environmental, Social and Governance (ESG) Standards in Developing Countries: Is there Potential to Create Common Ground? German Institute of Development and Sustainability (IDOS): Bonn, Germany.

[66] Diana, L., 2024. From Policies to Practices: A Journey to ESG Implementation [Master's Thesis]. Università Ca' Foscari Venezia: Venezia, Italy.

[67] Agyemang, A.O., Osei, A., Kongkuah, M., 2025. Exploring the ESG-circular economy nexus in emerging markets: A systems perspective on governance, innovation, and sustainable business models. Business Strategy and the Environment. 34(5), 5901–5924

[68] Fleck, R.S., Schjerning Povlsen, C., 2023. Exploring the Decision Making Process for Environmental, Social, and Governance (ESG) procurement Investments within Organizations: Interviewing Sustainability Managers [Master's Thesis]. Malmö University: Malmö, Sweden.

[69] Wang, J., 2026. ESG Strategies and Financial Markets: Antecedents, Corporate Decision-Making, and Real Effects. Springer: Singapore.

[70] Gaur, P., Irfan, M., Ramasamy, R.K., et al., 2025. ESG Narrative Quality in Green Bond Disclosures: Implications for Risk Perception, Transparency, and Market Trust. Risks. 14(1), 1.

[71] Lee, H.J., 2025. Building Bridges Between ESG and Consumer Intentions: Unveiling the Trust Dynamics in Small and Medium Enterprises. Sustainable Development. 33(6), 9042–9054.

[72] Usman, M., Elahi, A.R. A Strategic Framework for Addressing Modern Procurement Challenges: Disruptions, Digitalization, and ESG Compliance. 3(12), 298–326.

[73] Landi, G., Sciarelli, M., 2019. Towards a more ethical market: The impact of ESG rating on corporate financial performance. Social Responsibility Journal. 15(1), 11–27.

[74] Schramade, W., 2016. Integrating ESG into valuation models and investment decisions: The value-driver adjustment approach. Journal of Sustainable Finance & Investment. 6(2), 95–111.

[75] Bhattacharya, A., Bhattacharya, S., 2023. Integrating ESG pillars for business model innovation in the biopharmaceutical industry. Australasian Accounting, Business and Finance Journal. 17(1), 127–150.

[76] Tan, W., Dong, Q., Xu, C., et al., 2025. Navigating the ESG seascape: Media sentiment toward ESG and corporate strategies. Journal of Accounting Literature. DOI: https://doi.org/10.1108/JAL-04-2024-0057

[77] Viglia, G., Pera, R., Dyussembayeva, S., et al., 2023. Engagement and value cocreation within a multi-stakeholder service ecosystem. Journal of Business Research. 157, 113584.

[78] Pasquini, M., 2024. Green Alliances and ESG performance of Multinational Corporations [Master's Thesis]. Politecnico di Torino: Torino, Italy.

[79] Lee, M.T., Raschke, R.L., Krishen, A.S., 2022. Signaling green! Firm ESG signals in an interconnected environment that promote brand valuation. Journal of Business Research. 138, 1–11.

[80] Eccles, R.G., Stroehle, J.C., 2018. Exploring social origins in the construction of ESG measures. SSRN Electronic Journal. DOI: https://dx.doi.org/10.2139/ssrn.3212685

[81] Liu, H., Xu, Y., 2024. The impact of ESG ratings on the quality and quantity of green innovation of new energy enterprises. Frontiers in Energy Research. 12, 1382139..

[82] Kirchherr, J., Urban, F., 2018. Technology transfer and cooperation for low carbon energy technology: Analysing 30 years of scholarship and proposing a research agenda. Energy Policy. 119, 600–609.

[83] Hayashi, D., 2020. Green Innovation in China and India: Technological Learning, Technology Transfer, and Public Policies in the Wind Power and Solar Photovoltaic Industries [PhD Thesis]. University of Zurich: Zurich, Switzerland.

[84] Yu, H.J.J., Popiolek, N., Geoffron, P., 2016. Solar photovoltaic energy policy and globalization: A multiperspective approach with case studies of Germany, Japan, and China. Progress in Photovoltaics: Research and Applications. 24(4), 458–476.

[85] Cuhls, K., De Vries, M., Li, H., et al., 2015. Roadmapping: Comparing cases in China and Germany. Technological Forecasting and Social Change. 101, 238–250.

[86] Subtil Lacerda, J., Van den Bergh, J.C., 2014. International diffusion of renewable energy innovations: Lessons from the lead markets for wind power in China, Germany and USA. Energies. 7(12), 8236–8263.

[87] Fu, X., Zhang, J., 2011. Technology transfer, indigenous innovation and leapfrogging in green technology: The solar-PV industry in China and India. Journal of Chinese Economic and Business Studies. 9(4), 329–347.

[88] Lema, R., Lema, A., 2012. Technology transfer? The rise of China and India in green technology sectors. Innovation and Development. 2(1), 23–44.

[89] De La Tour, A., Glachant, M., Ménière, Y., 2011. Innovation and international technology transfer: The case of the Chinese photovoltaic industry. Energy Policy. 39(2), 761–770.

[90] Steffen, B., Matsuo, T., Steinemann, D., et al., 2018. Opening new markets for clean energy: The role of project developers in the global diffusion of renewable energy technologies. Business and Politics. 20(4), 553–587.

[91] Bhamidipati, P.L., Haselip, J., Elmer Hansen, U., 2019. How do energy policies accelerate sustainable transitions? Unpacking the policy transfer process in the case of GETFiT Uganda. Energy Policy. 132, 1320–1332.

[92] Reichert, J.D., 2023. How German Politics Can Support Investors. In: Schmidt, T., Pfaffenberger, K., Liebing, S. (Eds.). Practical Handbook Business in Africa. Springer: Wiesbaden, Germany. pp. 215–227.

[93] Mavrea, A., 2025. The Green Engine of Growth: Unraveling the Impact of ESG, Green Marketing, R&D Investments, and Sustainable Innovation on Business Expansion [Master's Thesis]. Technical University of Crete: Chania, Greece.

[94] Martin, H., Zhou, Y., Raman, R., 2025. Financial Metrics and Environment, Social, Governance (ESG) Performance: A Cross Border Comparison of China and the UK Construction Industries. Buildings. 15(8), 1236.

[95] Zhou, X., Nian, S., 2024. Sustainable Pathways: ESG Disclosure Performance and Optimization in China. Sustainability. 16(11), 4630.

[96] Jin, S., Xiong, R., Peng, H., et al., 2025. ESG performance and private enterprise resilience: Evidence from Chinese financial markets. International Review of Financial Analysis. 98, 103884.

[97] Liu, W., Yan, H., 2025. The evaluation of ESG strategy implementation effect based on performance prism: Evidence from the industrial and commercial bank of China. Humanities and Social Sciences Communications. 12(1), 395.

[98] Hahn, J., 2019. Towards a Global Technology Assessment-Insights from Cases in Germany, China, India and Beyond [PhD Thesis]. Karlsruher Institut für Technologie (KIT): Karlsruhe, Germany.

[99] Back, K.-J., 2025. Environmental, Social, and Governance Strategies in the Hospitality and Tourism Industry. Routledge: London, UK.

Downloads

How to Cite

Ma, Y. (2026). ESG as a Strategic Asset in Emerging Markets: A Case Study of Renewable Energy Technology Transfer and Marketing. Journal of Environmental & Earth Sciences, 8(8), 127–154. https://doi.org/10.30564/jees.v8i8.13284

Issue

Vol. 8 , Iss. 8 (August 2026): In Progress

Article Type

Review

License

Copyright © 2026 Yue Ma

Creative Commons License

This is an open access article under the Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) License.

Crossref
Scopus
Google Scholar
Europe PMC