The heightened emphasis on sustainability has significantly altered the manner of financial choices, by both individual, institutional and market. The idea of responsible investment making the environmental, social and governance (ESG) aspects a part of financial decision-making is becoming more and more addressed as one of the ways to establishing the long-term value and socio-economic stability. However, there are a few obstacles that prevent the transition to sustainable finance, which include financial and sustainability illiteracy, information asymmetry, the perception that there is a trade-off between returns and responsibility, regulatory arbitrage, and investor behavioral bias. In this paper, the author evaluates the key problems that hamper adoption of responsible investment and put in place the key pathways needed to be operational before sustainable financial decision-making can be achieved. The paper presents arguments on how the policy structures, technological advancement, ESGs reporting frameworks, and investor education can contribute to better sustainable returns on investment based on the literature available and the current financial practices. The findings highlight the importance of establishing the financial targets by making ethical, environmental, and social considerations towards ensuring the growth of sound financial systems and inclusive economies..