Corporate ESG Investment: Factors Affecting the Economic Sustainability

Abstract

ESG investing has gained prominence in sustainable development, yet its widespread adoption remains an evolving process. This paper comprehensively analyzes the factors influencing corporate ESG investment, considering technology, policy, investor performance, and social responsibility. The paper explores the definition and evolution of ESG, emphasizing its importance in promoting responsible business practices. It assesses the impact of emerging technologies like AI, blockchain, and renewable energy solutions on ESG practices. Industry-specific technologies in manufacturing, finance, and transportation sectors are also considered. The role of policies in shaping ESG investment practices is evaluated, examining regulatory frameworks, tax incentives, and reporting requirements worldwide. The effectiveness of these policies in encouraging ESG integration within corporate strategies is assessed. Investor performance is analyzed in relation to ESG, highlighting empirical evidence of its positive impact on financial performance and risk management. The growing demand for ESG-focused investments from institutional investors and its influence on corporate ESG practices are explored. The importance of social responsibility in driving ESG investment is emphasized, showcasing successful case studies of companies aligning their strategies with societal needs, enhancing brand reputation and stakeholder engagement. This analysis provides a holistic understanding of the dynamics surrounding corporate ESG investment. It underscores the need for technological advancements, supportive policies, investor demand, and social responsibility to foster widespread adoption of ESG practices. Ultimately, this paper emphasizes the collective consideration of these factors to promote sustainable development and a resilient global economy.