Abstract
<jats:p>The article investigates the transformation of investment processes under the influence of the sustainable development concept and the integration of ESG factors into modern financial activities. It analyzes the evolution of approaches to the evaluation of investment projects, where the exclusive focus on financial benefits is being replaced by a comprehensive consideration of environmental, social, and governance criteria. This shift signifies a fundamental change in the global financial paradigm, moving away from short-term profit maximization toward long-term value creation. Furthermore, special and detailed attention is paid to the practical mechanisms and sophisticated strategies for implementing the core principles of responsible investment. This part of the research includes a comprehensive analysis of various screening strategies, such as negative screening designed to exclude sectors with adverse social or environmental impacts, and positive or best-in-class screening used to identify industry leaders in sustainability performance. The article also examines thematic and impact investing, which are specifically designed to generate measurable and positive environmental or social impacts in parallel with achieving competitive financial returns. In addition to these strategies, the work explores the development and application of innovative financial instruments, such as green bonds and sustainability-linked bonds, where the specific financial terms and conditions, including interest rates and coupons, are directly and legally tied to the achievement of predefined and verifiable sustainability performance targets. These mechanisms and instruments represent the essential practical infrastructure that aligns global capital flows with the overarching goals of sustainable development, thereby ensuring that modern financial systems remain robust, transparent, and resilient in the face of a rapidly changing and increasingly complex global environment. The integration of ESG factors thus emerges not as an optional addition, but as a mandatory prerequisite for the strategic stability of the global financial architecture.</jats:p>