Factors Affecting ESG towards Impact on Investment: A Structural Approach

Satyabrata Aich, Ayusha Thakur, Deepanjan Nanda, Sushanta Tripathy and Hee-Cheol Kim
Additional contact information
Satyabrata Aich: Wellmatix Co., Ltd., Changwon 51395, Korea
Ayusha Thakur: Electronics and Communication Engineering, Delhi Technological University, Delhi 110042, India
Deepanjan Nanda: School of Mechanical Engineering, KIIT Deemed to be University, Bhubaneswar 751024, India
Sushanta Tripathy: School of Mechanical Engineering, KIIT Deemed to be University, Bhubaneswar 751024, India
Hee-Cheol Kim: Institute of Digital Anti-Aging Healthcare, College of AI Convergence, u-AHRC, Inje University, Gimhae 50834, Korea

Sustainability, 2021, vol. 13, issue 19, 1-14

Abstract: Recent disasters have emphasized the need for further action to protect businesses and society from long-term sustainability threats. We believe that the crisis is hastening nascent ESG trends, and that the increased focus on a company’s environmental and social impact will last long after crises have passed. We refined three fundamental concepts that guide our thinking on investing based on environmental, social, and governance factors as our approach to sustainable investing has evolved. The ESG factor assessments are more of an inherent aspect of a sound investment process than a separate investment discipline. When ESG variables are considered, the focus is on long-term risk adjusted investment returns. Investors should choose the strategy that best matches with their goals and interests. ESG investing is not a simple yes or no answer. The research gap extracted from the previous studies is to determine the relationship among the influencing factors of ESG and its priority with their driving and dependence capabilities. We used an ISM Approach to uncover the interrelationships and influencing behavior among the elements for considering ESG in investment after conducting a thorough literature research and consulting with experts. Here interpretive structural modeling (ISM) was used to explore the links among such extracted factors and its interdependencies. There was also focus on the short-term and long-term factors to achieve our desired objective. Our research will assist businesses in attracting and obtaining finance. The results of this analysis will be helpful for leaders to understand the impact of ESG on the investment aspects of an organization.

Keywords: ESG; investment; critical factors; interpretive structural modeling; strategy (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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