ESG Investing and Sustainable Finance: Implications for Investment Decision-Making
DOI:
https://doi.org/10.54518/fid.1.1.2023.1194Keywords:
ESG Investing, Sustainable Finance, Responsible Investment, Investment Decision-Making, ESG Performance, Sustainable Financial MarketsAbstract
ESG investing has become an increasingly important component of contemporary financial markets, influencing how investors evaluate risks, opportunities, and long-term value creation. This study examines the relationship between ESG investing, sustainable finance, and investment decision-making through a qualitative Systematic Literature Review (SLR) guided by the PRISMA 2020 framework. Relevant studies published between 2018 and 2022 were collected from major academic databases and analyzed using thematic synthesis. The findings indicate that ESG factors significantly influence investment decisions by providing additional insights into corporate sustainability performance, governance quality, and long-term organizational resilience. The review further reveals that investor awareness, sustainability concerns, regulatory developments, and access to ESG information are important drivers of ESG investment adoption. Additionally, sustainable finance contributes to responsible capital allocation, financial market development, and long-term value creation. The study concludes that ESG investing represents a strategic investment approach that supports both financial objectives and sustainability outcomes within modern financial markets.
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