ESG INTEGRATION IN FINANCIAL SECTORS: A CASE OF SUSTAINABILITY INVESTMENT STRATEGIES

Abstract

Purpose: The integration of Environmental, Social, and Governance (ESG) factors in the financial sector, aiming to comprehend the present tactics, evaluating the efficiency of sustainability investment, and recognizing the challenges and opportunities that financial firms face while implementing ESG criteria. Design/Methodology/Approach: A semi-systematic review methodology, looking at secondary data from a variety of released papers and articles collected through platforms such as Google Scholar, ResearchGate, Shodh Ganga, and Springer. This method provides an in-depth analysis of trends and difficulties in ESG integration in the financial sector. Findings: The financial institution under consideration has greatly improved its business image and trademark value by implementing ESG standards. Integrating ESG principles has helped to manage risks, improve long-term financial viability, and meet the demands of regulators. However, the organization faces obstacles such as data quality issues, the credibility of ESG claims, and the need to combine short-term financial goals with long-term sustainability objectives. The case study emphasizes the potential for new financial products, as well as the importance of strong regulatory frameworks to facilitate ESG integration. Practical Implications: The results suggest that uniform reporting standards and complete ESG compliance procedures are essential for successful ESG integration. The financial institution should integrate ESG into its essential business strategies to improve productivity and stakeholder trust. Also, regulatory settings must promote innovation and standardization of ESG practices, as well as raise market knowledge and educate consumers about the financial ramifications of these principles. Originality/Value: This work provides a thorough examination of the current level of ESG integration in the financial sector, emphasizing both the benefits and problems. It makes practical ideas for enhancing ESG practices and emphasizes the need for more study to better understand the long-term effects of ESG on financial success. Paper Type: Case study KEYWORDS: ESG Integration, Sustainability Investment Performance, Sustainability in Finance