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What determines private investors to choose ESG investments in their portfolios?

Diaconescu, S.G. (2024) What determines private investors to choose ESG investments in their portfolios?

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Abstract:This thesis investigates the growing role of environmental, social, and governance issues (ESG) in investment decisions. The study's goal is to better understand the motivations and challenges of ESG investment, as well as how it affects financial performance. The research takes a mixed-methods approach, combining quantitative data from surveys with qualitative insights from interviews with industry professionals. The findings show that investors are becoming more aware of and integrating ESG criteria, which is being driven by legislative demands, market demand, and a trend toward sustainable corporate practices. However, various impediments, including perceived limitations and external pressures, prevent mainstream adoption of ESG investment. These challenges include a lack of consistent reporting, restricted access to ESG data, and skepticism about the financial benefits of ESG investing. The study concludes that targeted regulations and investor education are critical for overcoming these hurdles and encouraging the adoption of ESG standards. The qualitative findings emphasize the importance of more openness, standardization, and regulatory assistance in order to boost investor trust and promote sustainable investing practices. This study adds to the current literature by conducting a thorough examination of ESG investing and making practical recommendations for policymakers and investors to improve the incorporation of ESG variables into investment choices. The report emphasizes the significance of a collaborative approach, encompassing regulators, industry stakeholders, and investors, in developing a strong framework for ESG investment. The findings have far-reaching consequences for the creation of sustainable financial markets and the accomplishment of long-term economic and environmental objectives.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:83 economics, 85 business administration, organizational science, 88 social and public administration
Programme:International Business Administration BSc (50952)
Link to this item:https://purl.utwente.nl/essays/100148
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