Sustainability’s Impact of ESG-Infused Policies on Leading Economic Indicators in Asian Economies

This study examines the correlation between Environmental, Social, and Governance (ESG) practices and important economic indicators by specifically examining the Consumer Confidence Index (CCI) and Stock Market Returns (SMR) in five Asian countries: Japan, Korea, India, China, and Malaysia. This study used panel data and quantile regression analysis to examine the heterogeneity of ESG effects from 2010 to 2023. The study finds that these impacts are both statistically significant and vary substantially across economic outcomes. Investments in renewable energy have a significant impact on economic indices, highlighting the strategic significance of ESG factors in both corporate and economic domains. The study also shows that increased carbon emission intensity has a negative effect on both consumer confidence and market performance, highlighting the increasing significance of environmental factors in economic decision-making. These results provide detailed and sophisticated knowledge of the economic effects of ESG in Asia. They provide practical insights that can be utilised by policymakers and business management dedicated to achieving sustainable development. This study enhances stakeholder theory by demonstrating the tangible significance of ESG variables to a wide range of stakeholders beyond shareholders.