Issues with Sustainable Finance in India

The strength of any modern economy is based on the soundness of its financial system. Sustainable finance refers to a school of thought that takes into consideration Environmental, Social and Governance (ESG) factors while making investments. Financial institutes play a major role in determining whether a country is pursuing sustainable economic development. The financial sector holds an immense amount of power and influence. Sustainable finance recognizes this and attempts to use it for the overall betterment of society. This study finds that sustainable corporations tend to provide higher return to investors. A study finds, is the companies put more efforts into ESG standards are more appealing to young professionals and can help companies engage with quality employees, enhance employee motivation and increase productivity overall. A study also finds that ESG companies tend to have a positive public image associated with them.