A critical review of environmental, social, and governance factors influencing sustainable investment decisions

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Abstract

The study aimed to investigate the effects of environmental, social, and governance (ESG) factors on sustainable investments. Using the Scopus database, a systematic search approach was employed, adhering to the preferred reporting items for systematic reviews and meta-analyses (PRISMA) protocol for article selection. PRISMA aims for clarity and openness; authors must disclose the methods used in the systematic review so that all readers can evaluate its merits (Moher et al., 2011). Only research articles published between 2019 and 2023 were considered, excluding earlier publications; 163 articles were chosen for assessment out of the 211 articles that were discovered using the search parameters. The article points up gaps in the published literature that may present chances for more research in the future. ESG factors are widely recognized as pivotal in assessing sustainable investment opportunities. Synthesizing various studies reveals that integrating ESG considerations positively influences decisions related to sustainable investments. In addition to outlining a visual and conceptual framework for this research area, the study offers insights into current trends and future directions in sustainable investment decision-making. This paper provides insights into the current trends and future directions in sustainable investment decision-making and incorporates important new information about the impact of ESG criteria on sustainable investing decisions.

Keywords: Environmental, Social, Governance, ESG, Sustainable Investment, Investment Decision

Authors’ individual contribution: Conceptualization — A.R.; Methodology — A.R., A.A., and E.H.; Software — A.A., E.H., and V.S.; Investigation — A.R., E.H., and V.S.; Resources — E.H., V.S., F.S., H.K., and N.T.; Writing — Original Draft — A.R.; Writing — Review & Editing — A.R., E.H., V.S., F.S., H.K., and N.T.; Visualization — A.R., A.A., and E.H.; Supervision — A.A. and E.H.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G11, Q56, M14

Received: 17.08.2024
Revised: 20.11.2024; 24.12.2024; 25.02.2025
Accepted: 28.02.2025
Published online: 05.03.2025

How to cite this paper: Rubab, A., Alam, A., Haque, E., Saghir, V., Siddiqui, F., Khan, H., & Tasneem, N. (2025). A critical review of environmental, social, and governance factors influencing sustainable investment decisions. Corporate Governance and Sustainability Review, 9(1), 68–85. https://doi.org/10.22495/cgsrv9i1p6