REFORMULATING ESG THROUGH A QUINTUPLE HELIX GOVERNANCE FRAMEWORK FOR CLIMATE RISK INTEGRATION IN SUSTAINABLE FINANCE

Abstract

Abstract  
This study reframes ESG as a systemic governance mechanism for integrating climate risk into financial stability. Fragmentation between ESG and macroprudential policy constrains risk internalization. A Quintuple Helix framework is proposed to bridge micro-, meso-, and macrolevel dynamics. The study employs a theory-building systematic literature review of 22 empirical and conceptual studies across financial and industrial sectors. Insights from financial stability theory, ESG governance, and innovation systems are synthesized to develop an integrative conceptual framework. The findings ESG operates effectively as a firm-level risk signal but cannot internalize systemic climate risk rooted in interconnected financial and transition dynamics. Fragmentation across governance levels limits coordination. Positioning ESG within a Quintuple Helix framework enables its transformation into a systemic cross-actor governance mechanism. The study is conceptual and based on literature synthesis rather than empirical testing. Future research may operationalize the proposed governance model through quantitative or policy-oriented investigations. The study suggests that regulators and financial institutions should move beyond disclosure-oriented ESG practices toward systemic governance coordination. Integrating ESG within cross-actor frameworks can enhance climate risk supervision and improve financial system resilience under transition pressures. The originality from this paper by embedding climate risk within systemic governance, this study emphasizes the role of coordinated financial decision-making in supporting ecological sustainability and socially inclusive economic resilience. This study contributes to the literature by bridging ESG governance, macroprudential policy, and innovation system theory into a unified framework that positions climate risk as an endogenous driver of financial stability. It advances ESG from a transparency tool to a systemic governance mechanism within a Quintuple Helix architecture. 

Keywords: ESG governance, Climate risk, Financial stability, Macroprudential policy, 
Quintuple Helix Systemic