Affiliation:
1. GLA University, Mathura, India
Abstract
In the awakening of persistent environmental issues and upsurged societal pressures constantly seeking attention from corporate stakeholders, the integration of investment decisions with the spectrum of environmental, social, and governance has gained significant momentum. This chapter aims to unfold the intricacies of the relationship between the mindset of an investor while investing in the companies that are on the upper end of ESG scores. In the beginning, the fundamentals of ESG and ESG investing have been explored. Investors' preferences and risks associated with a particular investment are the major twin aspects affecting the expected returns for corporates carrying robust ESG ratings. Lower cost of capital is one benefit enjoyed by these companies. Further, future trends and challenges have also been discussed. The chapter aims to provide the readers with a comprehensive understanding of an investor's behavior thus paving the way for responsible decision-making and fostering a transition to a green economy.
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