Abstract
This systematic review aims to examine how State-Owned Entities (SOEs) can effectively embed sustainability into their business models to achieve enduring economic, social, and environmental benefits. It seeks to identify key challenges, opportunities, and the specific environmental, social, and governance (ESG) issues SOEs must address, along with the strategies, barriers, enablers, and outcomes associated with sustainability integration.
Design/Methodology/Approach: The study employs a systematic review of literature from 2019 to 2024, focusing on journals and reputable sources in Public Sector management, sustainability, and environmental studies. Analysing empirical studies, theoretical frameworks, and sector-specific reports, the review synthesises insights on sustainability practices across diverse regions and sectors, providing a comprehensive evaluation of current sustainability approaches within SOEs.
Findings: The review highlights a range of effective sustainability strategies and practices, such as sector specific ESG frameworks, green innovation, and circular economy models. Leadership commitment, stakeholder engagement, and accountability mechanisms emerge as critical enablers, while financial limitations and regulatory constraints represent common barriers. Findings reveal that sustainability integration can enhance SOEs’ financial resilience, public trust, and environmental impact, although effectiveness varies based on sector and regional context.
Research Gaps:
Despite substantial literature, significant gaps exist in understanding how SOEs can tailor sustainability initiatives to unique operating environments. There is limited empirical research on long-term impacts, specific evaluation metrics, and the adaptation of ESG frameworks across varying economic and geographical contexts. Further, the interplay between sustainability integration and organisational performance remains underexplored, particularly regarding trade-offs and socio-economic impacts.
Originality/Value: This paper contributes to the limited body of research on sustainable business models in the public sector, particularly within SOEs, by providing actionable insights and highlighting sector-specific recommendations. It offers a unique synthesis of current approaches. It identifies areas for future research, making it a valuable resource for policymakers, researchers, and practitioners seeking to foster sustainable growth within SOEs.