ABSTRACT Financial development supports economic growth, reduces unemployment, ensures justice, and has an impact on the environment. Human development significantly supports E-7 countries in achieving the goal of stable and qualified economic development in the next decade. This factor affects people’s ability to manage environmental problems and increases their productivity by contributing to people’s industrial and production processes. It can be a guide for states to choose technologies that take into account the clean environment and increase energy efficiency in areas where energy is constantly used. Increasing urbanization encourages various development activities. This study aims to investigate the impact of financial development, human development, urbanization, and industrial employment on environmental quality for E-7 countries with regularized common correlated effects and the Augmented Mean Group long-run estimators. Another important aim of the study is to achieve Sustainable Development Goals 4, 8, 9, 11 and 13. Increasing financial development improves environmental quality in Russia and India, according to robust results from long-run estimators. Increasing human development in China increases environmental pollution. While the expansion of urbanization increases environmental quality in Brazil, it decreases it in China. The increase in employment in the industry increases the load capacity factor in the panel group, Brazil, China, Indonesia, and India. In addition to these results, the current article presents policy recommendations for governments to increase environmental quality on a country basis and provides feasible solutions on how to use the independent variables in the study as environmental tools.