ESG and Economic and Social Development: a comparative analysis of BRICS and G7 before and during the COVID-19 pandemic
DOI:
https://doi.org/10.11606/issn.1982-6486.rco.2025.221826Keywords:
Sustainability, Human Development Index (HDI), Gross Domestic Product (GDP), COVID-19, SDGsAbstract
Environmental, Social, and Governance (ESG) practices are essential for advancing the Sustainable Development Goals (SDGs), especially in the face of global crises such as the COVID-19 pandemic.Thus, this study aims to analyze the relationship between ESG performance and GDP and HDI indicators before and during the COVID-19 pandemic by comparing G7 and BRICS countries. Data were collected from Refinitiv Eikon® from 2005 to 2021 and processed using clustered panel data regression at the firm level. The results reveal that ESG is positively related to GDP and HDI in the overall model, while in the segmented analysis GDP shows a positive relationship in both groups and HDI is negative in the BRICS and positive in the G7. It was also found that before the pandemic ESG was positively associated with GDP, whereas after the pandemic it was positively associated with HDI. These findings contribute by showing managers that the adoption of ESG practices can improve indicators related to a country’s development, thereby contributing to the achievement of different SDGs.
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