Expectations, Believes, And Perceptions Of Investors Towards Environmental, Social, Governance (ESG) Investment For Sustainability

Abstract

Investors capital role to fuel the transition to sustainable economy attracts the large number of economists. Evidence suggests that investors perception, expectation, and belief for the Environmental, Social, Governance (ESG) while making investment decision, not only offer better performance but also create an impact on society. Equilibrium models with diverse ESG investments, reveals that although green assets may offer low return in longer run in comparison to non-ESG (n-ESG), but ESG investment would outpace the n-ESG investment via different channels in shorter run. Present study highlights that ESG preference through engagement offers positive impact on society, and shift for sustaining policies due to rising market values and investors choice for low capital cost green organizations.