A Descriptive Study of ESG Investing: A Way Towards Sustainability
DOI:
https://doi.org/10.33516/rb.v49i4.15-24pKeywords:
ESG, Sustainability, Investment Decision-Making, Sustainable Investing, Sustainable and Responsible InvestingAbstract
Environmental, social, and governance (ESG) considerations have emerged as critical factors in the investment decision-making of companies and individuals. ESG factors assess the impact of environmental, social, and governance aspects of a company. This paper explores the importance of ESG factors for sustainability, the growing trend toward ESG investing, and the challenges and opportunities associated with ESG integration. The study uses a qualitative research design, using secondary sources such as academic articles, company reports, media reports, and statements of persons of importance. The findings reveal that ESG considerations are crucial for sustainable development, the companies that prioritize ESG factors tend to perform better in the long term, have a lesser cost of capital, better retention rate, and lower litigation risks.
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