Ashok K. Rathoure | International Journal of Green Chemistry | Vol 10, Issue 01 | pp. 1-16 | ISSN: 2582-5925
Abstract
The financial world is witnessing a surge in Environmental, Social, and Governance (ESG) investing, a trend reshaping how investors approach the market. This strategy transcends traditional financial analysis by integrating non-financial considerations like environmental impact, social responsibility, and corporate governance.. With growing worries about social injustice, climate change, and ethical business practices, investors are using ESG factors more and more to guide their investing strategies and help create a more sustainable future.. Through case studies and expert perspectives, we explore how ESG considerations can drive investment decisions, mitigate risk, and foster sustainable growth. At the core of ESG investing lie three crucial dimensions used to analyse potential investments: Environmental Impact: This assesses a company's footprint on the environment, considering factors like pollution control, resource usage, climate change mitigation strategies, and commitment to sustainability. Social Responsibility: This evaluates how a company interacts with its stakeholders, encompassing labor practices, diversity and inclusion efforts, adherence to human rights principles, and contributions to the surrounding community. Corporate Governance: This examines a company's leadership structure and practices, focusing on aspects like board composition and independence, executive compensation structure, shareholder rights, transparency in reporting, and commitment to ethical business conduct. Investors can reflect their values and contribute to positive environmental and social results by incorporating ESG factors into their decision-making process. These include data inconsistency across companies and industries, the potential for greenwashing by companies misrepresenting their ESG efforts, and the inherent subjectivity of ESG criteria, which can lead to varying interpretations and investment outcomes
Keywords
Risk mitigation, Environmental factors, financial performance, Sustainable investing, social factors, ESG investing, Stakeholder engagement, Governance factors
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How to cite this article
@article{RathoureAK2024,
author = {Ashok K. Rathoure},
title = {Navigating ESG Investing: Real-World Case Studies and Insights},
journal = {International Journal of Green Chemistry},
year = {2024},
volume = {10},
number = {01},
pages = {1--16},
issn = {2582-5925},
url = {https://journalspub.com/publication/uncategorized/article=8825}
}