This research investigates how effectively resources are used and CO2 emissions are reduced in Asian countries, using the Slacks-Based Measure (SBM) DEA model to manage undesirable outputs such as pollution. By evaluating efficiency scores and slack measures, the study analyzes the effects of different factors such as labor force, energy consumption, gross capital formation, economic output (GDP) and CO2 emissions in 40 Asian nations. The study methodology includes several key steps. Initially, data on labor force, energy consumption, gross capital formation, GDP, and CO2 emissions were collected from reliable sources such as the World Bank and the Energy Information Administration. Next, the SBM-DEA model, proposed by Tone in 2004 for assessing efficiency amidst undesirable outputs, was then applied to these data. Then, efficiency scores and slack measures were calculated to assess resource use and environmental performance. Subsequently, the regression analysis identified factors that impact efficiency, including resource utilization, economic development, and environmental impact. The final step involved crafting policy recommendations to improve resource use and reduce CO2 emissions in less efficient countries. This detailed approach provided valuable information on the environmental and economic efficiency of Asian nations. The results show different levels of environmental efficiency in Asia. Top-performing countries like Bhutan, Brunei, China and Cyprus achieve perfect efficiency, balancing optimal resource allocation with zero slack in labor force, energy use, gross capital formation, GDP output or CO2 emissions, thus exemplifying economic productivity coupled with environmental sustainability. Other nations, such as Oman, the United Arab Emirates (UAE), and Malaysia, also exhibit notable environmental efficiency, although with slight variations in various metrics. For example, Oman has minimal slack in labor force and energy use, indicating efficient resource management. In contrast, countries such as India, Bangladesh, and Indonesia show significant slack in labor force utilization and energy consumption. Specifically, India shows the highest slack in labor force hours and CO2 emissions, highlighting inefficiencies in resource management and environmental practices. These findings underscore the need for focused interventions to improve resource efficiency and environmental performance. The study also outlines inequalities in environmental efficiency in different areas. Some nations excel in specific aspects such as labor force utilization or energy consumption but may struggle to reduce CO2 emissions or gross capital formation. This nuanced insight is crucial for policy makers who want to develop customized strategies to improve overall environmental efficiency. A key implication of our study underscores the urgent need for targeted policies to improve resource efficiency and reduce CO2 emissions, especially in less efficient nations. These policies should address particular weaknesses, such as the utilization of the labor force and energy consumption. Furthermore, the findings emphasize that economic growth should not come at the expense of environmental sustainability; the most efficient countries demonstrate a balance between economic progress and responsible resource management. Central to this research is the application of the Slacks-Based Measure (SBM) DEA model, which highlights the importance of considering undesirable outputs, such as CO2 emissions, when evaluating efficiency. This model can support the creation of more comprehensive environmental policies. Additionally, factors such as labor force, energy consumption, and GDP are critical to determining a country's environmental efficiency. A deeper understanding of these relationships can inform more strategic resource allocation and development plans. Finally, inequalities in environmental efficiency between countries indicate opportunities for regional cooperation and knowledge exchange. Successful environmental practices from leading countries can guide those struggling with resource management, promoting a more sustainable future for the region. In conclusion, the study highlights significant inequalities in environmental efficiency in Asian countries. Nations such as Bhutan, Brunei, China and Cyprus show exemplary efficiency, while nations such as India, Bangladesh, and Indonesia face considerable inefficiencies. Although Oman shows notable efficiency, it shows minimal slack in labor force and energy consumption, reflecting effective resource use and environmental management. These findings highlight the urgent need for targeted measures to improve resource efficiency and environmental performance in the region.