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@article{187967,
        author = {DAMARAJU PRADEEP KUMAR},
        title = {Integrating ESG into Public Sector Decision-Making: A Study of the Role of Institutional Investors and Stakeholders},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {12},
        number = {7},
        pages = {1198-1204},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=187967},
        abstract = {The growing importance of Environmental, Social and Governance (ESG) principles has redefined how public institutions design policies, manage risks and allocate capital. This chapter investigates the integration of ESG criteria into public sector decision-making frameworks, emphasizing the role of institutional investors and diverse stakeholders in promoting transparency, accountability and sustainability. As sovereign wealth funds, pension funds and public investment bodies increasingly align with ESG standards, the public sector’s governance models must balance fiscal responsibility with sustainable performance goals. The research adopts a multidimensional lens, analysing how ESG frameworks facilitate responsible investment, ethical procurement and climate risk mitigation across institutional operations. It also explores the dynamic relationship between institutional investors, often key financiers of state-led initiatives and public policy objectives that prioritize long-term value over short-term gains. The chapter assesses ESG adoption mechanisms, including regulatory alignment, disclosure requirements, stakeholder dialogue and impact measurement frameworks. Using comparative case studies from emerging and developed economies, the research identifies best practices and gaps in the integration process. The findings reveal that ESG-driven decision-making enhances institutional legitimacy, strengthens public trust and fosters resilience in national economies. However, varying governance capacities and policy inconsistencies pose challenges to uniform implementation. The chapter concludes that institutional investor engagement and structured stakeholder collaboration are critical to embedding ESG into the fabric of public governance. This synthesis underscores the urgent need for coherent ESG governance frameworks within public institutions as a core pathway toward sustainable development.},
        keywords = {ESG integration, public governance, institutional investors, stakeholder engagement, sustainable finance, policy accountability, responsible investment},
        month = {January},
        }