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Empirical Analysis of ESG Factor Integration on Investment Performance in Clean Energy Industry A Multi-Dimensional Assessment Framework

Abstract

The integration of Environmental, Social, and Governance (ESG) factors into investment decision-making processes has gained substantial attention in clean energy sectors. This research examines the empirical relationship between ESG performance metrics and investment returns across clean energy portfolios through comprehensive quantitative analysis. Utilizing a dataset encompassing 245 clean energy companies across global markets from 2018 to 2024, this study employs advanced statistical modeling and machine learning techniques to quantify ESG impacts on financial performance indicators. The analysis reveals significant positive correlations between comprehensive ESG scores and risk-adjusted returns, with environmental factors demonstrating the strongest predictive power for long-term value creation. Governance metrics exhibit substantial influence on operational efficiency and capital allocation effectiveness. The findings provide actionable insights for institutional investors seeking to optimize portfolio construction strategies while advancing sustainability objectives in energy transition investments.

Keywords

ESG Integration, Clean Energy Investment, Portfolio Performance, Sustainability Finance

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References

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