Sustainable Finance: Evaluating the Integration of ESG Criteria in Corporate Investment Strategies
The intersection of finance and sustainability has become one of the most consequential developments in global economic governance. Sustainable finance , broadly defined as the process of taking environmental, social, and governance ( ESG ) considerations into account when making investment decisions, represents a fundamental reorientation of capital markets. It moves finance beyond the narrow pursuit of short-term profits toward long-term value creation that aligns economic growth with environmental stewardship and social equity. As climate risks, social inequalities, and governance failures increasingly threaten financial stability and corporate reputation, the integration of ESG principles into investment strategies is reshaping how companies are valued and how investors perceive risk and return. Sustainable finance is thus not a niche movement but a systemic shift toward responsible capitalism. The origins of sustainable finance can be traced to the socially responsible investing...