A Multi-Level Comparative Analysis of ESG Governance and Carbon Footprint Reduction in South Asian and African Supply Ecosystems

• Ada John

  ladoke Akintola university of technology

  Author

The decarbonization of supply chains in emerging economies presents a critical yet underexplored challenge, particularly regarding the interplay between regulatory frameworks and institutional capacities. This study examines how regulatory stringency interacts with institutional capabilities to shape Environmental, Social, and Governance (ESG) governance effectiveness and carbon footprint reduction outcomes across South Asian and African supply ecosystems. Employing a multi-level comparative research design, the study analyzes survey data from 468 supply chain professionals across eight countries—India, Bangladesh, Pakistan, Sri Lanka, Nigeria, South Africa, Kenya, and Ghana—using structural equation modeling and hierarchical linear modeling. Findings reveal that regulatory stringency alone accounts for only 31.2% of the variance in carbon reduction outcomes, whereas the interaction between regulation and institutional capabilities explains 67.8% (p < 0.001). Digital innovation adoption emerges as a critical mediating mechanism, amplifying regulatory effectiveness by 42.3% in contexts with robust institutional support. The study contributes a validated framework demonstrating that institutional capabilities—particularly technical infrastructure, financial systems, and enforcement mechanisms—constitute the fundamental determinants of ESG governance success, with regulatory stringency serving as a necessary but insufficient condition. Practically, the findings provide actionable guidance for policymakers and supply chain managers in emerging economies, emphasizing capability-building over regulatory proliferation.

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Copyright (c) 2026 Ada John (Author)

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