ESG Technology, Investor Judgement, and Local Adaptation

This chapter explores the interplay between emerging Environmental, Social, and Governance (ESG) technologies, investor judgement, and the need for local contextualisation in sustainable finance practices. As AI-driven ESG analytics platforms, blockchain-based traceability tools, and digital disclosure systems become more prevalent, they promise greater transparency and decision-making efficiency. However, the reliance on algorithmic assessments and standardised metrics often obscures cultural, environmental, and regulatory nuances, particularly in emerging markets. Drawing on global examples and insights from Southeast Asia, this chapter critically examines how overconfidence in technological objectivity can lead to misplaced trust and behavioural blind spots. It advocates for a hybrid model that strikes a balance between technological scale and localised ESG interpretation, adaptive governance, and investor literacy. This chapter concludes by proposing policy and design strategies that foster context-sensitive digital ESG ecosystems.