SUSTAINABLE ECONOMY AND FINANCE: ESG INTEGRATION AND CORPORATE RESPONSIBILITY IN FINANCIAL MARKETS / ԿԱՅՈՒՆ ՏՆՏԵՍՈՒԹՅՈՒՆ և ՖԻՆԱՆՍՆԵՐ. ESG ԻՆՏԵԳՐՈՒՄԸ ԵՎ ԿՈՐՊՈՐԱՏԻՎ ՊԱՏԱՍԽԱՆԱՏՎՈՒԹՅՈՒՆԸ ՖԻՆԱՆՍԱԿԱՆ ՇՈՒԿԱՆԵՐՈՒՄ

Abstract

The merging of environmental, social and governance (ESG) principles and corporate responsibility in financial institutions is crucial to the promotion of a sustainable economy. This article examines the implications of this fusion for long-term value creation and stakeholder engagement. Regulatory measures such as the European Union's Non-Financial Reporting Directive have initiated this metamorphosis, emphasizing openness and accountability. By incorporating ESG standards into investment tactics, financial institutions can better manage risks and identify opportunities, thereby increasing their effectiveness and sustainability. Corporate responsibility underscores the moral imperative for financial institutions to operate with honesty and societal concern, building trust with stakeholders. Despite progress, barriers remain in areas such as revenue management and stakeholder engagement. Cooperative efforts between regulators, industry players and civil society are essential to promote a sustainable economy and ensure a durable financial structure.