INFLUENCE OF ESG FACTORS ON SALARIED EMPLOYEES INVESTMENT CHOICES: PERCEPTIONS, BARRIERS, AND MOTIVATIONS

Objective:The objective of this study is to examine the impact of Environmental, Social, and Governance (ESG) factors on the investment decisions of salaried employees. The increasing significance of sustainable investing necessitates an understanding of salaried employees awareness, perceptions, and behaviours concerning ESG integration in financial decisions. This study examines the willingness to adopt ESG-focused investments, the motivations influencing these decisions, and the obstacles impeding ESG adoption. The findings offer insights into the influence of sustainability considerations on financial decision-making and the alignment of ESG factors with employees investment objectives.

Methodology: Exploratory and analytical research methods were utilised in combination. Data were collected via convenience sampling utilising Google Forms, focussing on salaried employees across various industries. The questionnaire comprised demographic information and Likert scale assessments to evaluate awareness, preferences, motivations, and barriers associated with ESG investment. The data collected underwent analysis through statistical methods, particularly regression analysis, to investigate the relationships among ESG awareness, investment allocation, and financial outcomes.

Findings:The study indicates that although a majority of salaried employees demonstrate moderate to high awareness of ESG factors, this awareness does not consistently result in a pronounced preference for ESG-oriented investment products. Primary motivations for ESG investing encompass alignment with personal values and anticipated long-term financial advantages however, apprehensions regarding financial trade-offs and insufficient knowledge of ESG investments serve as obstacles. Employees that allocate a greater share of their portfolios to ESG investments generally prioritise sustainability factors and report improved financial and non-financial results. The findings underscore the intricacies of ESG investment choices and the necessity for improved awareness and accessibility of sustainable investment options.