EMERGING PARADIGMS IN SOCIALLY RESPONSIBLE INVESTMENT: AN EMPIRICAL STUDY WITH FOCUS ON ESG INVESTING

ESG investing has become a prominent consideration for retail investors in recent years, reflecting a shift towards socially responsible investment practices. Environmental, Social, and Governance investing, is an investment approach that considers a company’s performance in these three key areas alongside traditional financial metrics. In ESG investing, investors evaluate a company’s commitment to environmental sustainability, social responsibility, and good governance practices. ESG investing aims to promote long-term sustainability and ethical practices within companies while seeking to generate positive social and environmental impacts alongside financial returns. This paper seeks to understand how retail investors awareness regarding ESG investing impacts their attitudes towards ESG investing. The study collected data through a self- structured questionnaire from 110 retail (existing and potential) investors in Lucknow, India. Cronbach’s Alpha was used to evaluate the questionnaire's reliability, and to test the hypothesis, the study used linear regression analysis. The findings indicated that higher awareness level among retail investors positively impacts their attitudes (with a condition if the returns are not compromised) towards ESG investing, highlighting the crucial role of investor awareness in making sustainable investment decisions. Further, the study's implications suggest that enhancing awareness among retail investors regarding ESG investing can foster a more positive attitudes towards sustainable investments. Keywords: Environmental, Social, And Governance Investing, ESG Investing, Awareness, Attitudes, Retail Investors