Integration of ESG metrics into balanced scorecard frameworks – a literature review

Ilesanmi Oladele Ayodeji (), Emmanuel Olusola Ojo () and Kehinde Aladelusi ()
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Ilesanmi Oladele Ayodeji: Department of Business Administration, College of Management Sciences, Osun State University, Osun State, Nigeria
Emmanuel Olusola Ojo: Department of Business Administration, College of Management Sciences, Osun State University, Osun State, Nigeria
Kehinde Aladelusi: Department of Business Administration, College of Management Sciences, Osun State University, Osun State, Nigeria

Business & Management Compass, 2026, issue 2, 5-12

Abstract: As environmental, social, and governance (ESG) issues have become more relevant, the need for performance measuring systems that can incorporate sustainability objectivesinto organizational strategy has grown. This paper presents a review of literature about how the ESG measures have been integrated into the Balanced Scorecard framework as well as their contribution to the area of Strategic Performance Management. Based on the articles retrieved from Scopus, Web of Science and DOAJ, the review applies a structured literature review approach, focusing on recent peer-reviewed studies published between 2021 and 2025. The results show that there is a clear trend towards moving away from the traditional Balanced Scorecard and towards Sustainability Balanced Scorecard, which includes environmental, social and governance objectivesin addition to the traditional set of performance measures. The reviewed studies also indicate that ESG-integrated scorecards can be used to aid in sustainability reporting, governance and organizational performance evaluation. But issues still exist on standardized ESG metrics, the digital capabilities needed to measure performance and integrated implementation frameworks. The novelty of the present paper is that it brings together the scattered literature on ESG-focused Balanced Scorecard into a coherent conceptual framework. The results offer practical guidance for organizations with a need to integrate sustainability goals into strategic performance management and value creation processes.

Keywords: Balanced Scorecard; Sustainability Balanced Scorecard; ESG Performance; Performance Measurement Systems; Strategic Management (search for similar items in EconPapers)
JEL-codes: M10 M14 M40 Q56 (search for similar items in EconPapers)
Date: 2026
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