The Impacts and Challenges of ESG Investing

Abstract

With the rise and expansion of responsible and sustainable investing in recent years, ESG investing is one of the categories that has gained momentum. This literature review aims to bring ESG investing and its current state of development to a broader audience. The article first introduces the concepts related to ESG and the ESG ecosystem, demonstrating the current manifestation of the framework in prestigious corporations among different industries with in-depth case studies. In addition to understanding the content and structure of ESG, it is essential to recognize the controversial topics that have been argued in recent years. This article also highlights the current inconsistencies in ESG disclosure and the examination of its financial performance by authoritative bodies to bring a deeper and more contemporary understanding of ESG investing. Lastly, it draws out the improvement solutions that are currently available to refine ESG investing by demonstrating the most up-to-date policy announcements.