Author(s)

Zhe Liu, Yuhan Yang, Jiahao Yang, Yaning Liu, Yiran Tang

Corresponding Author

Zhe Liu

Abstract

This paper focuses on the critical role of ESG (environmental, social, and governance) investment in sustainable economic development and its implementation mechanism. First, the basic concepts and principles of ESG investing are presented, showing ESG paying attention to environmental responsibility, social responsibility, and good corporate governance practices while considering economic returns. Second, it explains how ESG investment can effectively promote the green transformation of the economy and the development of social justice through optimizing resource allocation, improving environmental performance, strengthening social responsibility, and perfecting corporate governance. In addition, the researchers used quantitative and qualitative empirical analysis to demonstrate the positive correlation between ESG investment and corporate sustainable development performance. We analyzed the differences in this correlation between different industries and regions. Finally, based on the research results, we put forward corresponding policy recommendations to encourage and guide more capital to flow into enterprises with excellent ESG performance to promote the comprehensive and sustainable development of the economy and society.

Keywords

ESG Investing; Sustainable Economic Development; Environmental Factors; Social Factors; Corporate Governance