THE IMPACT OF ESG FACTORS ON THE INVESTMENT PROCESS
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Abstract
This study explores the influence of Environmental, Social, and Governance (ESG) factors on the investment process, highlighting their growing significance in shaping investor decisions. Drawing on recent research (2023-2025), including meta-analyses from NYU Stern, PRI reports, and industry-specific studies, the analysis demonstrates that ESG integration enhances financial performance, mitigates risks, and aligns portfolios with global sustainability trends. Statistical data from the Global Sustainable Investment Alliance projects sustainable investment assets reaching $53 trillion by 2025, underscoring ESG's transformative role. Despite challenges such as political opposition and sector-specific variations, ESG factors are increasingly vital for long-term value creation and risk management in modern investment strategies.
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References
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