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Rajni Bala, Sandeep Singh, Kiran Sood and Simon Grima : Sustainable Finance and Investment
Analytics: A Systematic Literature Review and Meta-Analysis Approach

Advanced investment analytics, especially the use of machine learning and predictive
modeling in ESG evaluation, represent a breakthrough in sustainable investment
decision-making. These approaches offer a more dynamic and data-rich perspective,
helping investors detect greenwashing, assess ESG event impacts, and optimise asset
allocation in real time. Both European and Asian markets were the most consistent in
recording financial benefits of ESG integration regionally, given the favorable policy
developments and governing disclosure standards. By comparison, Asia-Pacific and
emerging markets were a potential area but with high variance in the form of nascent
regulatory frameworks, data inconsistencies, and differences in ESG levels of
maturity.
Although these developments have taken place, there are still a number of challenges.
The lack of standardised ESG measurement frameworks and the inconsistency among
ESG rating agencies continue to create barriers to implementation and academic
comparison. Additionally, the risk of greenwashing—where firms exaggerate or
misrepresent their ESG performance—remains a threat to the integrity of sustainable
finance.
This review also identified gaps in coverage related to emerging economies,
underrepresented sectors such as agriculture and mining, and the social dimension of
ESG—particularly labor practices and community impacts. The inclusion of these
dimensions in future studies is necessary to fulfil the holistic promise of sustainability
in finance.
In sum, sustainable finance is no longer peripheral; it is increasingly integrated into
core financial theory, practice, and regulation. As the global economy continues its
transition toward low-carbon, inclusive growth, the fusion of ESG frameworks with
sophisticated investment analytics will be essential in shaping resilient, ethical, and
profitable financial systems.

REFERENCES
Adebayo, A., & Okonkwo, U. (2021). Impact of ESG strategies on SME financing: A
developing country perspective. Journal of Development Finance and Sustainability,
7(3). https://doi.org/10.1016/j.jdfs.2021.104319

Adegbite, A., & Ndlovu, P. (2020). ESG disclosure and stakeholder engagement in sub-
Saharan Africa. African Journal of Business Ethics, 10(2). https://doi.org/10.1016/j.afjeb.
2020.101221

Ahmed, R., & Chen, X. (2021). ESG risk and return: An integrated portfolio
simulation. Finance Research Letters, 42(6). https://doi.org/10.1016/j.frl.2021.
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