Abstract
The growing importance of ESG considerations in investment decisions reflects a transformative shift in how investors evaluate the sustainability and ethical impact of firms. As ESG integration becomes increasingly popular among investo rs, it is important to analyze how such an integration can affect investment decisions. While previous articles discussed reasons why investors integrate or not integrate ESG in making investment decisions, they did not probe into the question of how problems of ESG itself affect its integration in investment decision-making. This essay explores this topic by analyzing previous articles about ESG, its traits, and investors’ views on taking into account ESG factors in investment decision-making. It is concluded that some problems of ESG, including the absence of agreed criteria and lack of transparency in the rating process, can prevent ESG integration from being effective in making investment decisions.
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