Navigating sustainability: Unveiling the interconnected dynamics of ESG factors and SDGs in BRICS-11

In this study, we investigate the impacts of ESG (environmental, social, and governance) factors on sustainable development goals (SDGs) for BRICS-11 countries. The AMG, FMOLS, DOLS, and ARDL models are applied. While we found negative impacts of environmental factors (ENVf) on SDGs for Argentina, Ethiopia, and China, we found positive impacts of social factors (SOCf) on SDGs for South Africa and Argentina. Additionally, while we found positive impacts of governance factors (GOVNf) on SDGs for Ethiopia, Iran, and Saudi Arabia, we found negative impacts for the United Arab Emirates. No significant relationships were found between ENVf, SOCf, and GOVNf on SDGs for Brazil, Russia, India, and Egypt. These findings highlight the nuanced impacts of ESG factors on SDGs, providing valuable insights for policymakers and emphasizing the need for country-specific sustainable development strategies. The negative environmental impact on SDGs in Argentina, Ethiopia, and China suggests that environmental degradation may hinder sustainable development, underscoring the importance of balancing economic growth and environmental sustainability. This result can also be interpreted through the Pollution Haven Hypothesis, which posits that developing countries may attract more foreign investments in pollution-intensive industries due to their less stringent environmental regulations.