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Paper ID: 187

ESG-Based investment products: a burden or an answer for corporate sustainability?

V S Agustin1, A Atmaji1,2, and A Setyowati1,3*

1Faculty of Economics and Business, Universitas Sebelas Maret, Indonesia

2Local Wisdom Research Group, Universitas Sebelas Maret, Indonesia

3Financial Markets and Institutions Research Group, Universitas Sebelas Maret Indonesia

Email: arumsetyowati@staff.uns.ac.id

The ESG concept is necessary considering the number of manufacturing companies contributing to increasing carbon and GHG emissions as well as excessive electricity consumption. This study aims to provide a reference for companies in making decisions regarding the issuance of ESG-based investment products. In order to find out whether ESG is a burden or an answer for the company’s sustainability, a literature study is carried out, which is then analyzed descriptively. Currently, investor trust is increasing when companies are able to implement ESG with financial products in the form of investments in shares and mutual funds. In fact, ESG is not only a focus in Indonesia but throughout the country and has developed into a positive trend. Not only beneficial for conventional financial institutions, but ESG also positively impacts Islamic financial institutions. Even though the implementation of ESG in the company has an unfavorable impact or result, it cannot be denied that ESG is an important concept that must be instilled early and focused on long-term plans. Even during the pandemic, ESG investment remains stable and tends to increase. Thus, ESG-based investment is not a burden but an answer for the company’s sustainability.

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