Responsible Investing - ESG and Sustainability in the Contemporary Financial Systems

Sammanfattning: In the contemporary world when the utmost need of sustainable future and responsible investing is widely discussed in order to create a long term, green, socially accountable and liable future, the financial sector and socially conscious investors are progressively applying Environmental, Social and Governance criteria to the process of analysis to identify material risks and further growth opportunities. Even though ESG is a set of non-financial criteria by its definition and not readily quantifiable in monetary terms, it already has a significant influence on the performance of businesses and financial institutions. An accurate study of the continuous improvements in the environment of existing regulatory instruments allow the assumption that regardless the challenges it faces, the emerging trend of incorporating ESG requirements in business and finance activities is not a temporary trend and will eventually result in a long-term sustainability in the financial sector.