Sustainable Investing with ESG - Variables Impacting Individual Investor Decisions

Abstract

Lately, global investors have shifted their focus from pure financial activity to impact investing. In addition to economic reasons, many investors worldwide are interested in corporate efforts addressing global issues such as climate change, work equity, and eradicating poverty. Millennials, according to polls, are more likely to purchase a product from a firm with a favorable environmental and social standing. Investors are seriously contemplating ESG investment opportunities with the notion that companies that adhere to ethical, environmental, social, and regulation practices have access to financial services. ESG investing has increased in India in recent years. However, this could only be the beginning, and more investor understanding of the concept and benefits of ESG investment in emerging markets is required. In light of the above context, the objective of this research was to understand better investors' opinions regarding ESG activities and how they influence their investment decisions. Our findings confirmed that investors' attitudes influenced by ESG Perception lead to investment decisions, and ESG activities can help moderate the relationship between ESG activities and investment decisions.