Impact of ESG (Environmental, Social, Governance) factors on Investment Decision

Environmental, Social, and Governance (ESG) factors are becoming critical considerations in investment decision-making. Investors today are no longer focused solely on traditional financial metrics; they increasingly evaluate a company's sustainability practices and ethical standards. ESG has emerged as a framework to assess non-financial factors that significantly affect long-term profitability, risk management, and corporate reputation. This report offers a comprehensive view of how ESG influences both institutional and individual investors, exploring how ESG scores and practices are being integrated into portfolio selection, asset allocation, and risk evaluation.