The Role Of Esg Factors In Investment Decisions: Identifying Determinants Of Adoption Among Informed Investors

This study is an attempt to verify factors determining ESG adoption among urban-informed investors. The role of ESG factors in investment decisions is becoming increasingly important, particularly among informed investors in urban cities. ESG factors provide a framework for evaluating a company's sustainability, social responsibility, and governance practices, which can significantly impact its long-term financial performance. We used the survey method to collect the responses through a structured questionnaire for ESG-related investment decisions. We conducted EFA and GLM Mediation models to find the relationship. We found a significant relationship between ESG awareness and ESG investment patterns among investors. Further, it is found that demographic factors play a vital role in the integration of ESG investment, especially among young adults. Additionally, it is noticed that the type of employment and level of education are key determinants of ESG investment. ESG awareness has a substantial impact on ESG investing. Furthermore, the findings suggest that ESG awareness has both direct and indirect effects on ESG investing.