GREEN FINANCE AND ESG INVESTING: IMPLICATIONS FOR CORPORATE SUSTAINABILITY AND SHAREHOLDER VALUE

Abstract

ESG and Green finance investment have gained the center stage in covering sustainable corporate activities, and value creation in the long-term by the shareholders. In its paper, the paper seeks to discuss the connection that exists between the idea of green financial structures, ESG investment strategy and the corporate results that are based on sustainability in the contemporary business settings. Primary data shall be collected based on a descriptive type of research design in which investors and corporate managers shall be taken into consideration to secondary data in terms of annual reports, sustainability reports and financial disclosures to supplement the analysis. In the paper the impact of the ESG integration in the investment decision upon corporate governance, environmental responsibility and social performance and the net effects of these on the shareholder value are discussed. In order to identify the significance of such relations, the statistical tools (correlation analysis and regression analysis) will be employed. The findings must have practical implication to the policy makers, investors and corporate executives and must reflect how the strategic role of financial decision making must be in line with sustainable and responsible business operations to enhance the social value, in addition to the economic ones.