Exploring the Impact of ESG Practices on Sustainable Development Goals Achievement in South Asia

Abstract This study explores the impact of Environmental, Social, and Governance (ESG) practices on Sustainable Development Goals (SDGs) in South Asia, using data from 2001 to 2023 across Afghanistan, Bangladesh, India, Pakistan, Nepal, Maldives, Bhutan, and Sri Lanka. Ordinary Least Squares (OLS) and panel quantile regression assess the effects of renewable energy consumption, forest area, CO 2 emissions, life expectancy, population density, female-to-male ratio, control of corruption, government effectiveness, and regulatory quality on the SDG Index Score. The OLS results indicate high explanatory power ( R 2 = 0.734), with renewable energy and regulatory quality significantly boosting SDG outcomes, while control of corruption negatively influences them. Panel quantile regression highlights the consistent positive influence of renewable energy and the importance of gender equity and population density. CO 2 emissions negatively affect higher quantiles, pointing to sustainability challenges. These findings emphasize the need for integrated governance, environmental management, and social equity in achieving SDGs.