What are the research gaps, key arguments, credibility, comparisons and reflection forIntroduction

Sustainable investing, also known as Environmental, Social, and Governance $($ESG$)$ investing, integrates non$-$financial factors into investment decisions. Investors increasingly seek to align their financial goals with ethical and environmental considerations, leading to the growth of ESG funds, green bonds, and impact investing.

Key Trends in Sustainable Investing

Growth of ESG Funds: The number of ESG$-$focused investment funds has surged, with global assets surpassing $$40$ trillion.

Regulatory Push: Governments and financial institutions are introducing stricter disclosure requirements to ensure transparency.

Performance Debate: While some studies suggest ESG investments outperform traditional portfolios, others argue the returns are comparable or slightly lower.

Challenges in ESG Investing

Greenwashing: Some companies exaggerate their sustainability efforts to attract investors.

Lack of Standardization: Different ESG rating agencies use varying methodologies, leading to inconsistencies.

Short$-$Term vs$.$ Long$-$Term Returns: Investors debate whether ESG investing provides sustainable long$-$term profits or is merely a trend.

Impact on Financial Markets

Sustainable investing is reshaping capital markets by encouraging businesses to adopt socially responsible practices. Companies with strong ESG