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Perspective Chapter: The Environmental, Social, and Governance (ESG) Investment and Its Implications

In: Corporate Social Responsibility in the 21st Century

Author

Listed:
  • Pattarake Sarajoti
  • Pattanaporn Chatjuthamard
  • Piyachart Phiromswad
  • Suwongrat Papangkorn

Abstract

Investment management has been an important part in a long-term financial planning for investors around the world. Traditionally, investors aim to maximize the risk premium relative to the riskiness of the investment subjected to certain goals and constraints such as the time horizon, risk appetite, and consumption behavior. Recently, investors, both retail and institutional investors, have shown significant interests in sustainability especially on the environmental, social, and governance, which is often referred to as ESG investments. Studies on ESG investing are unable to reach consensus. We will review literature related to ESG investing in order to identify key limitations that obstruct advancements in this field. In particular, key limitations that we have identified involve the issues of data inconsistencies and the choice of benchmarks, among others. Furthermore, this chapter identifies areas for future research that address these limitations and thus should advance research in this field.

Suggested Citation

  • Pattarake Sarajoti & Pattanaporn Chatjuthamard & Piyachart Phiromswad & Suwongrat Papangkorn, 2023. "Perspective Chapter: The Environmental, Social, and Governance (ESG) Investment and Its Implications," Chapters, in: Muddassar Sarfraz (ed.), Corporate Social Responsibility in the 21st Century, IntechOpen.
  • Handle: RePEc:ito:pchaps:267225
    DOI: 10.5772/intechopen.108381
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    More about this item

    Keywords

    investment; sustainability; ESG;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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