SUSTAINABLE FINANCIAL PRACTICES: A REVIEW OF ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) INVESTMENT STRATEGIES

Abstract

Sustainable financial practices have gained significant attention in recent years as investors increasingly prioritize Environmental, Social, and Governance (ESG) factors in their decision-making processes. This review explores various ESG investment strategies, highlighting their role in promoting long-term financial stability, ethical responsibility, and environmental sustainability. The study examines key approaches such as negative screening, positive screening, impact investing, and ESG integration while assessing their effectiveness in achieving sustainable financial outcomes. Additionally, the review discusses challenges, including data standardization, regulatory frameworks, and greenwashing concerns, which impact the credibility and scalability of ESG investments. By analyzing recent trends and case studies, this paper provides insights into the evolving landscape of sustainable finance and the potential of ESG-driven investment strategies to reshape global financial markets.