Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 3rd International Conference on Business and Policy Studies
Series Vol. 71 , 18 January 2024
Open
Access | Article
Sustainability Management: A Review of ESG Principles and Policies in Investment
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Abstract
Since numerous nations commit to achieving carbon neutrality by 2050, there is a need to examine the implications of Environmental, Social, and Governance (ESG) principles on investment decisions. This research emphases on the violation of investment principles regarding ESG factors, specifically in relation to the maximisation of shareholders' wealth. Additionally, this paper explores the reasons behind banks considering the cessation of investments in corporations that have pledged to cut carbon emissions, despite the evidence of a positive correlation between sustainable management and stock performance. Moreover, there are concerns among many that ESG practises may be fraudulent and merely a form of greenwashing, lacking the ability to convince shareholders to consider sustainability. In this study, the primary challenges that arise in relation to ESG factors are considered, and the author also assesses the insufficient outcomes in this field that necessitate additional investigation into the actual effectiveness of ESG in promoting sustainability. ESG framework offers long-term benefits to both shareholders and stakeholders, as opposed to focusing on short-term outcomes and results. It is essential to demonstrate the significance of ESG practises and results in order to prove their value to investors. While ESG firms are more likely to withstand challenging circumstances, they may not necessarily outperform other stocks in a thriving macroeconomy.
Keywords
ESG, Greenwashing, Investing, Sustainability, Stakeholder Capitalism
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 3rd International Conference on Business and Policy Studies
- ISBN (Print)
- 978-1-83558-281-7
- ISBN (Online)
- 978-1-83558-282-4
- Published Date
- 18 January 2024
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/71/20241422
- Copyright
- 18 January 2024
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited