The Impact of ESG-Based Sustainable Finance Measuring on Individual Investors' Investment Decisions on the Pakistan Stock Exchange (PSX)
Keywords:
ESG, Sustainable Finance, PSXAbstract
ESG concerns have become increasingly important in Pakistan Stock Exchange (PSX) investor selections. This study examines how sustainable finance, particularly the environmental, social, and governance (ESG) factors, affect PSX investor decisions. ESG aspects include a company's environmental effect, social responsibility, and corporate governance. The study explores how these elements affect investors' perceptions of a company's long-term survival, risk profile, and growth potential. It also examines how Green Innovation affects investment decisions, acknowledging the importance of corporations promoting eco-friendly practices and technologies in a changing global economy. This research affects investors and policymakers. Knowing the importance of ESG elements and Green Innovation can help individual investors make more sustainable and ethical investments. ESG-compliant enterprises that promote green innovation may boost financial returns and improve society and the environment. These insights can help policymakers create ESG reporting transparency frameworks that increase company accountability and give investors accurate and consistent information to make decisions. This study illuminates the interconnected dynamics of sustainable finance, ESG factors, and Green Innovation, emphasizing the importance of holistic investment strategies that benefit individual investors and contribute to a more sustainable and prosperous economy.