The role of financial institution in promoting responsible investing

  • Unique Paper ID: 174382
  • PageNo: 3605-3612
  • Abstract:
  • Financial institutions play a pivotal role in promoting responsible investing by integrating environmental, social, and governance (ESG) factors into their investment decisions and ownership practices. This integration not only aligns financial returns with societal and environmental benefits but also enhances long-term portfolio performance by identifying and mitigating potential ESG related risks. The Principles for Responsible Investment (PRI), supported by the United Nations, provide a global framework for financial institutions to incorporate ESG issues into their investment processes. As of December 2024, over 5,000 signatories from more than 80 countries, representing approximately US$128 trillion in assets under management, have committed to these principles. he United Nations Environment Programme Finance Initiative (UNEP FI) further underscore the financial sector's commitment to sustainability. Established in 1992, UNEP FI collaborates with over 400 financial institutions worldwide to promote sustainable finance, offering guidance and tools to align financial practices with sustainable development goals.

Copyright & License

Copyright © 2026 Authors retain the copyright of this article. This article is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

BibTeX

@article{174382,
        author = {Panchani Ishu and Jayshree Govindbhai Rohit and Dr.Tejal shah},
        title = {The role of financial institution in promoting responsible investing},
        journal = {International Journal of Innovative Research in Technology},
        year = {2025},
        volume = {11},
        number = {10},
        pages = {3605-3612},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=174382},
        abstract = {Financial institutions play a pivotal role in promoting responsible investing by integrating environmental, social, and governance (ESG) factors into their investment decisions and ownership practices. This integration not only aligns financial returns with societal and environmental benefits but also enhances long-term portfolio performance by identifying and mitigating potential ESG related risks. The Principles for Responsible Investment (PRI), supported by the United Nations, provide a global framework for financial institutions to incorporate ESG issues into their investment processes. As of December 2024, over 5,000 signatories from more than 80 countries, representing approximately US$128 trillion in assets under management, have committed to these principles.
he United Nations Environment Programme Finance Initiative (UNEP FI) further underscore the financial sector's commitment to sustainability. Established in 1992, UNEP FI collaborates with over 400 financial institutions worldwide to promote sustainable finance, offering guidance and tools to align financial practices with sustainable development goals.},
        keywords = {Financial institutions, Responsible investing, Sustainable finance Environmental, Social, and Governance (ESG), Impact investing, Ethical investing, Risk management, Transparency, Fiduciary duty Stakeholder engagement, Long-term value},
        month = {March},
        }

Cite This Article

Ishu, P., & Rohit, J. G., & shah, D. (2025). The role of financial institution in promoting responsible investing. International Journal of Innovative Research in Technology (IJIRT), 11(10), 3605–3612.

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