ROLE OF ESG (ENVIRONMENTAL, SOCIAL & GOVERNANCE) INVESTING IN PORTFOLIO MANAGEMENT

ESG (Environmental, Social, and Governance) investing has emerged as a transformative approach in portfolio management, aligning financial objectives with sustainable development goals.Investors are increasingly considering non-financial parameters such as carbon footprint, labor policies, and corporate governance in their investment decisions.This paper examines the role of ESG investing in portfolio management, focusing on its impact on risk mitigation, long-term returns, and investor confidence.A review of global trends, coupled with a survey of 120 Indian investors, reveals that portfolios integrating ESG factors demonstrate resilience during market volatility and attract greater institutional participation.The findings suggest that ESG integration not only enhances ethical investment practices but also contributes to financial performance, thereby redefining modern portfolio strategies.