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Investigating How Firms in Emerging Economies Integrate AI‐Driven Systems and ESG Metrics Into Biodiversity Conservation and Circular Economy Strategies

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  • Suleman Bawa
  • Simplice A. Asongu

Abstract

This study investigates how firms in emerging economies integrate artificial intelligence (AI) with environmental, social, and governance (ESG) practices to enhance biodiversity conservation and circular economy outcomes. It examines the mediating role of corporate social responsibility (CSR) governance and the moderating effect of institutional strength in shaping this relationship. Using longitudinal data from 4320 firm‐year observations across India, Brazil, and Ghana (2018–2024), a multilevel panel structural equation model (SEM) was employed with extensive robustness and endogeneity diagnostics. Findings show that AI adoption is positively associated with ESG integration and environmental performance, mediated by CSR governance. Institutional strength strengthens the ESG–performance link, with the strongest effects in high‐governance contexts. Cross‐country analyses reveal the AI–ESG–performance pathway is most pronounced in India, followed by Brazil and Ghana. The study advances an integrated AI–ESG–CSR framework, illustrating how digital intelligence translates into measurable ecological sustainability in emerging economies. It also highlights the need for ethical AI governance and social equity considerations.

Suggested Citation

  • Suleman Bawa & Simplice A. Asongu, 2026. "Investigating How Firms in Emerging Economies Integrate AI‐Driven Systems and ESG Metrics Into Biodiversity Conservation and Circular Economy Strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 35(5), pages 7420-7435, July.
    • Handle: RePEc:bla:bstrat:v:35:y:2026:i:5:p:7420-7435
    DOI: 10.1002/bse.70547
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