AI-Enabled Sustainable Finance: A Data-Driven Approach to Enhancing ESG Investment Decisions and Corporate Sustainability Performance

Dr. D Srikanth Reddy

Abstract: Sustainable finance has become central to global investment strategies as organizations increasingly focus on environmental, social and governance (ESG) goals. This study examines how Artificial Intelligence (AI) supports sustainable finance by improving ESG data analysis, risk assessment, and decision-making. Using secondary data and thematic analysis, the paper highlights the integration of machine learning, natural language processing, and predictive analytics in evaluating corporate sustainability performance. The findings reveal that AI enhances transparency, accuracy, and reliability in ESG scoring while reducing greenwashing risks. The paper concludes by offering implications for investors, policymakers, and corporations in adopting AI-driven financial sustainability practices.

Keywords: Environmental, Social and Governance (ESG), Artificial Intelligence (AI), Risk Management, Corporate Sustainability, Investment Decision Making

How to Cite?: Dr. D Srikanth Reddy, "AI-Enabled Sustainable Finance: A Data-Driven Approach to Enhancing ESG Investment Decisions and Corporate Sustainability Performance", Volume 14 Issue 11, November 2025, International Journal of Science and Research (IJSR), Pages: 1615-1619, https://www.ijsr.net/getabstract.php?paperid=SR251119183908, DOI: https://dx.doi.org/10.21275/SR251119183908