Asian Journal of Economics, Business and Accounting

ESG refers to Environmental, Social, and Governance. It is a system that enables understanding of how a company functions beyond merely generating profits. ESG reporting is the process of a company publishing detailed information on how it functions and tackles issues in the areas of the environment, social responsibility, and company governance. This paper is a condensed summary of the research that has been done on the connection between Environmental, Social, and Governance (ESG) performance and investment decisions, and more so on Infosys Limited. The main objective of the research is to analyze how Infosys's ESG performance is related to different financial metrics, such as stock price movements and investor inflows. The study aims to know whether better ESG ratings can make a positive impact on investor decisions and financial performance.

The research will primarily rely on secondary data and the Data will be analyzed using Quantitative Analysis which includes descriptive Statistics, correlation analysis, and regression analysis. In this study, the time frame has been used between 2020-2024. Main findings reaffirm that enhanced ESG performance can drive improved financial performance, and hence investor decision-making. It implies that ESG disclosure is not about number compliance but a strategic tool that can contribute to increased investor confidence and have an impact on financial performance. The research focuses on the ESG report influence on investment, particularly concerning Infosys Ltd. By defining the role that ESG disclosure has in building investor confidence, lowering perceived risk, and eventually improving the financial performance of sustainable-oriented firms. The research is centered on ESG reporting's impact on investment, the research methodology, and the necessity to understand investor sentiment in this regard. The research highlights the ability of ESG performance to influence financial results and investors' behavior.