ESG FACTORS IN INVESTMENT DECISIONS: EXAMINING THE IMPACT OF SUSTAINABILITY REPORTING, CORPORATE GOVERNANCE, AND FINANCIAL PERFORMANCE

Abstract

This study examines the growing importance of Environmental, Social, and Governance (ESG) factors in investment decisions, focusing on sustainability reporting, corporate governance, and financial performance. The research aims to explore how these factors influence investor behavior and financial outcomes, using a library research approach with primary data from academic literature and secondary data from relevant reports and studies. The findings indicate that companies with strong ESG practices tend to attract more investment, mitigate risks, and achieve better long-term financial results. The study concludes that integrating ESG factors into investment strategies not only enhances financial performance but also contributes to a more sustainable and ethical investment landscape.