A Study on Behavioral Insights into ESG Investing: Strategies for Advancing Sustainable Finance

Abstract

The accelerating convergence of finance and sustainability has brought Environmental, Social, and Governance (ESG) investing to the forefront of contemporary discourse. This empirical investigation seeks to delineate the behavioral underpinnings that influence ESG investment decisions in Guntur, India. Employing a quantitative design with a sample size of 200 investors, this study utilizes descriptive statistics, factor analysis, multiple regression, and structural equation modeling (SEM) to elucidate the cognitive, emotional, and informational determinants shaping ESG investment proclivity. The findings underscore significant behavioral constructs, including perceived efficacy, risk aversion, and moral salience, in catalyzing sustainable financial choices. The study extends strategic insights into the formulation of investor-centric ESG frameworks aligned with sustainable development goals (SDGs).