SUSTAINABLE FINANCE, OPERATIONAL MANAGEMENT, AND ESG PERFORMANCE IN ASEAN: A PANEL DATA ANALYSIS OF SUSTAINABLE DEVELOPMENT AND ECONOMIC GROWTH

Abstract

Sustainable development has emerged as a central goal in response to the escalating challenges posed by climate change. In this context, the present study investigates how operational management, sustainable finance, and environmental, social and governance (ESG) performance influence sustainable development within ASEAN member states over the period from 2000 to 2023. In addition to evaluating the individual effects of these variables, the study further explores their combined influence on sustainable development outcomes. To conduct the empirical analysis, the Driscoll-Kraay Standard Error estimation method is employed, as it offers robustness in addressing cross-sectional dependence within panel data. The empirical findings reveal that operational management, ESG performance, and sustainable finance each contribute positively to sustainable development. Furthermore, the moderating role of ESG performance is examined, revealing that while it weakens the positive association between operational management and sustainable development, it strengthens the positive linkage between sustainable finance and sustainable development across the ASEAN region. These results offer valuable insights for policymakers, suggesting that advancing sustainable finance and effective operational management strategies may serve as key mechanisms for promoting sustainable development within the selected countries.