Impact Of Esg Investments On Sustainable Development Of Microenterprises: Evidence From Bangladesh

This paper studies ESG investments made by microenterprises under a donor-supported project in Bangladesh and assesses the impact of ESGs on their performances. Evaluating ESG investments of 62 microenterprises from 40 administrative districts, our results suggest that ESG investments benefitted the agribusiness sector the most. However, the common service center (CSC), established under the project to provide technical, skill development, and marketing support, contributed positively and significantly to the performances of manufacturing microenterprises only. The economic benefits, evidenced by increased farm production and productivity, thus underscore the need for sector-specific ESG investments. Both PCA and regression analysis support the results. It is thus important to mainstream environmental, social and governance-related practices in the business strategies of microenterprises for their sustainable development.