Department of Finance, College of Business Administration in Hawtat bani Tamim, Prince Sattam bin Abdulaziz University, Saudi Arabia
DOI:
https://doi.org/10.63503/aisem.52Keywords:
ESG, Sustainability Intelligence, Connected Financial Ecosystem, Artificial IntelligenceAbstract
The swift growth of Environmental, Social, and Governance (ESG) investing is an indication of the growing significance of sustainability in financial systems. Nevertheless, the practical impact of ESG on financial decision-making is still minimal because of the issues of data inconsistency, the absence of standardization, and interpretational difficulties. This chapter aims to address these challenges by introducing sustainability intelligence as a tool that increases the financial relevance of ESG information. This study proposes a conceptual framework describing how sustainability intelligence enhances the relationship between ESG information and financial decision-making within connected financial ecosystems. The discussion shows that with the support of interpretative mechanisms and inclusion in financial systems, ESG can make more contributions to investment strategies, risk management, and the creation of long-term value. The chapter offers insight into what sustainable finance is becoming and why it is important to shift from disclosure-based forms of ESG practices to more integrated, decision-based ones. It provides implications for financial institutions, regulators and policymakers who want to enhance the success of sustainability integration
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