Gender Perspectives on ESG Stocks: Awareness and Engagement in Sustainable Investment Analysis

Abstract

ESG (Environmental, Social, and Governance) criteria are increasingly significant in evaluating a company's performance and impact. Investors and stakeholders consider these factors when making investment decisions, and gender influences preferences in ESG stocks. This study assesses public awareness and understanding of ESG stocks in sustainable investments, with a focus on gender differences among 380 investors from Kolhapur City, selected using purposive sampling to ensure diversity in age, education, occupation, and socio-economic status. Data analysis through SPSS software and Chi-square tests revealed several insights. Male investors were more actively engaged in stock investments than female investors. Male investors demonstrated higher awareness and consciousness of ESG aspects before investing compared to female investors. Environmental and social dimensions were given more importance than governance when selecting stocks based on ESG criteria. Investors were particularly aware of environmental issues such as a company's carbon footprint, energy efficiency, waste management, and adherence to environmental regulations. Social aspects like labor practices, diversity and inclusion, human rights, and community engagement were also prioritized. However, the governance dimension, which includes understanding of a company's leadership, executive compensation, shareholder rights, and corporate governance practices, was less understood and considered by investors. This is crucial for both genders to make informed investment decisions that align with sustainability goals. As ESG considerations become integral to investment strategies, understanding how different genders perceive and engage with ESG stocks can provide valuable insights for effective sustainability communication and overcoming barriers to adoption.