Retail Investors Perspective towards ESG for Investment Decisions

Abstract

21^st Century has witnessed unprecedent challenges and opportunities which are the result of globalization, desire for inclusive development and concern for climate change. It is now well recognized principle world over that integrating Economic, Social and Ethical responsibilities into governance of business brings long term success, competitiveness and sustainability.  Green/sustainable investment is a very broad term. It is very closely related to various investment approaches such as Socially Responsible Investment (SRI) and Economic, Social and Governance Investing (ESG). The present paper focuses on ESG approach of Green investing.

The study is an insight into the individual stock market investors’ preferences for ESG issues while making investment decisions. The study is undertaken by conducting survey of individual stock market investors who are from finance field in the city of Mumbai, using simple random technique. The study confirms the preference of shareholders for ESG in taking investment decisions.