ESG Investing: Development, Impact, and Challenges
DOI:
https://doi.org/10.54691/15hsvd71Keywords:
ESG Investing; Responsible Investing; ESG Risks.Abstract
In recent years, ESG (Environmental, Social, and Governance) investing has witnessed notable growth as environmental concerns escalate and public awareness of sustainability rises. As a critical mechanism for improving environmental governance, enhancing financial market transparency, and redirecting capital toward sustainable development goals, ESG also faces some key challenges, including definitional ambiguity, inconsistent reporting standards, and the risk of ESG-washing, which may undermine its credibility. By reviewing ESG literature, the paper suggested that to advance ESG investing, coordinated efforts among stakeholders and the development of robust regulatory frameworks are essential to improve data quality and ensure meaningful evaluations.
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