Strategic Value of Environmental, Social, and Governance Practices in Achieving Sustainable Development Goals and Competitive Advantage Across Industries

In response to growing stakeholder expectations and the pursuit of sustainability, environmental, social, and governance (ESG) practices have emerged as critical components of corporate strategy. This study aimed to evaluate the impact of ESG practices on sustainable competitive advantage (SCA), focusing on the relative contributions of the three ESG dimensions while accounting for firm size and industry type. This study utilized a quantitative cross-sectional design using data from corporate managers across diverse industries. Regression analysis assessed each ESG dimension’s contribution to SCA. All three ESG dimensions positively and significantly influenced SCA. Governance practices exerted the strongest influence, followed closely by environmental practices, while social practices also demonstrated a significant impact. Moreover, ESG integration fostered resilience, stakeholder trust, and market differentiation, with governance serving as the foundational element for strategic advantage. Further, environmental and social practices enhanced positioning in eco-conscious, socially responsible markets. This study quantitatively demonstrates how each ESG dimension contributes to sustainable competitive advantage, highlighting governance as pivotal, the interconnected value of environmental and social practices, and the importance of integrating ESG for long-term corporate growth and resilience.