The Impact of ESG Awareness on Personal Investment Decisions

Abstract

Environmental, Social, and Governance (ESG) factors have become increasingly significant in shaping personal investment decisions as investors seek to align their financial goals with sustainability and ethical considerations. This study explores the impact of ESG awareness on individual investment choices, analyzing the extent to which knowledge and perception of ESG influence portfolio allocation. Using survey data and existing literature, the research identifies key trends in investor behaviour and the role of ESG disclosures in decision-making. The findings highlight a growing preference for sustainable investments yet also reveal challenges such as information asymmetry and varying levels of awareness. This study provides valuable insights for investors, policymakers, and financial institutions aiming to promote ESG integration in investment strategies.