The environmental aspect of CSR has been debated over the past few decades as stakeholders increasingly require organizations to become more environmentally aware and socially responsible. The environmental aspects of sustainable practices have increasingly become a major issue in the manufacturing sector. Hence, the objective of this study is to assess how environmental standards are directly related to competitiveness indicators. The study used a quantitative research design using primary data from a survey. The study population comprised eight (8) listed manufacturers of consumer goods products in South-west Nigeria. Thus, the total sample size for the study is 410. Primary data gathered from certified consumer goods manufacturing firms in Southwest Nigeria was evaluated using structural equation modelling, specifically partial least squares. The research findings established a significant direct and strong relationship between environmental standards and the competitiveness of consumer goods manufacturing firms in Southwest Nigeria. The study found that the selected manufacturing firms support climate change legislation to gain power over their competitors. The selected firms have taken initiatives to align sustainability with economic goals for competitiveness. Managers and other people at the top play a key role in decision-making and implementing the firm's sustainability practices. This study recommends that the need for manufacturing sector continue to behave fairly and responsibly and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.