ESG factors influence Foreign Direct Investment (FDI) by attracting investors to countries and companies that follow sustainable, ethical, and well-governed practices. Strong ESG performance builds investor confidence, reduces risk, and encourages long-term, responsible investment flows
I couldn't agree more with you, Mr. Abdurahman. Strong ESG performance is key to attracting sustainable investment. By integrating ESG principles into operations, corporates can enhance transparency, reduce risks, and build trust with environmentally and socially conscious investors.
Thank you for your thoughts on this, Tekeber. I agree with you as well.
Concise and on point, Abdurahman. ESG is increasingly a filter for FDI decisions—investors want to know their capital supports responsible growth. One way to strengthen this is by aligning national ESG policies with international benchmarks to signal credibility and readiness.
Investors aren’t just looking for returns anymore; they’re looking for stability and signals that a country or company can operate responsibly over the long term.
When a market shows solid environmental standards, fair labor practices, and transparent governance, it lowers the investor’s perception of risk. That means fewer surprises, fewer compliance issues, and fewer political or operational shocks down the road.
On the corporate side, companies with credible ESG data tend to attract more patient capital (long term) investors who want sustainable growth rather than short-term extraction. So ESG isn’t just about looking good; it’s about creating the kind of predictable, well-run environment that global investors trust.
When a market shows solid environmental standards, fair labor practices, and transparent governance, it lowers the investor’s perception of risk. That means fewer surprises, fewer compliance issues, and fewer political or operational shocks down the road.
On the corporate side, companies with credible ESG data tend to attract more patient capital (long term) investors who want sustainable growth rather than short-term extraction. So ESG isn’t just about looking good; it’s about creating the kind of predictable, well-run environment that global investors trust.
These are excellent points, John. Investors today are looking for long-term reliability, not just short-term gains. When ESG is done right, it becomes a signal of stability and maturity, both at the national and corporate level. It’s not just about optics, it’s about building the kind of trust that attracts serious, lasting investment.