INFLUENCE OF TECHNOLOGICAL INNOVATIONS ON ESG INVESTING: TRENDS AND FUTURE DIRECTIONS

Abstract

This paper looks at how technological advancements in big data, blockchain, artificial intelligence (AI), the Internet of Things (IoT), and fintech are changing sustainable finance, especially in ESG invesment. Thanks to these technological advancements, ESG data is now more accessible, transparent, and accurate, allowing investors to make better-informed decisions that support sustainable development objectives. Even if new technologies like 5G networks and quantum computing have a lot of promise, their quick adoption comes with drawbacks, such as problems with data quality, complicated AI models, and the possibility of technology-driven greenwashing. The paper makes the case that standardizing reporting, fostering cross-industry collaboration, and striking a balance between technology advancements and social responsibilities are essential to the future of ESG investment.