Sustainable Finance: Integrating Environmental, Social, and Governance Criteria

Abstract

Sustainable finance has emerged as a crucial paradigm in reshaping the financial landscape by incorporating Environmental, Social, and Governance (ESG) criteria into investment decision-making processes. This paper explores the integration of ESG factors into financial practices and their implications for investment strategies, corporate governance, and regulatory frameworks. Through a review of current methodologies, case studies, and theoretical perspectives, the paper highlights how sustainable finance contributes to long-term value creation, risk management, and societal impact. The findings suggest that the effective integration of ESG criteria can enhance financial performance and align investment practices with broader sustainability goals, while also addressing challenges related to measurement and reporting.