Sustainable Leadership and Green Investment Decisions: The Role of ESG Integration in Reducing Financial Risk

Abstract

This study aims to address this gap by exploring the relationship between sustainable leadership and decisions on green investment, as well as how incorporating ESG can serve as a strategic approach to reducing financial risks. It takes an empirical approach, gathering data from finance and corporate management professionals and decision-makers. The study was conducted systematically. It starts with an introduction, followed by a literature review and theoretical background. The hypotheses are developed and the conceptual framework presented in the next section. After that, methodology is presented, including data collection and analysis by Smart PL. The results and discussion interpret the results and findings, while conclusions, policy and financial management implications, and future research directions are presented. This study brings together leadership and perspective with ESG-informed investment approaches and delivers a nuanced perspective on how sustainability and financial stability can be aligned at organizations. In this study, the relationship between Sustainable Leadership (SL), ESG Integration (ESGI), Green Investment Decisions (GID), Financial Risk Reduction (FRR), and Organizational Performance (OP) is explored. The study is based on empirical survey data collected from 667 respondents (out of 700) from different professional spheres in India. The analysis of the proposed model is carried out as direct and indirect relationships between the constructs are evaluated using Partial Least Squares Structural Equation Modeling (PLS-SEM) in Smart PLS.