This study delves into the intricate relationship between economic growth and its ecological repercussions, employing a comprehensive assessment of ecological footprint across 131 nations. The time period considered for the research spans from 2009 to 2019. Utilizing the CS-ARDL methodology, the results indicate a correlation between reducing ecological footprint and bolstering private sector domestic credit. Additionally, a relationship between diminishing private sector domestic credit of banks and augmenting private sector domestic credit within the financial sector has been identified. In conjunction with other indicators of financial advancement, the significance of domestic lending to the private sector has been underscored. The study reveals a notable reduction in human population's adverse impact on the environment. However, increased levels of energy consumption, foreign direct investment and per capita GDP are associated with an improvement in global quality of life. Particularly noteworthy is the validation of the "pollution haven hypothesis" in the global economic context. The implications of this research are substantial; suggesting that global economic dynamics may support efforts towards environmental conservation. However, outcomes may vary across regions or countries, particularly regarding the emphasis placed by the financial sector on environmental preservation. This study comprehensively examines the complex nexus between economic progress and its ecological consequences, keeping in consideration factors such as financial growth, urbanization, energy consumption and Foreign Direct Investment (FDI).

Using 2010–2021 listed A-share companies as the research sample, we explore the influence of corporate ESG performance on sustainable development performance and the mechanism by which this influence occurs. The results indicate that ESG performance effectively enhances sustainable development performance. Mechanism analyses reveal that ESG performance promotes sustainable development performance through the “reputation effect” and “supervision effect”. Further analyses reveal that among the three dimensions of ESG, the social governance dimension (“S”) plays the most significant role. When environmental regulations are more stringent, green credit guidelines are stronger, internal controls are more effective, and the firm is in a growth or decline phase in its life cycle, the enhancing effect of ESG performance on sustainable development performance becomes more pronounced. Additionally, ESG performance can further enhance a company’s ability to obtain commercial credit and its overall performance. This paper enriches related research on the value effect of ESG and provides insights for listed companies, participants in the capital market, and government departments to emphasize ESG performance and improve ESG incentive policies.