Environmental sustainability in financial investment decisions

• Ano de defesa: 2023
• Autor(a) principal: Code, Scotia
• Orientador(a): Vieites, Yan
• Tipo de documento: Dissertação
• Tipo de acesso: Acesso aberto
• Idioma: eng
• Palavras-chave em Português: Sustentabilidade; Fundos verdes; Comportamento do consumidor
• Palavras-chave em Inglês: ESG; Sustainability; Green Funds; Green Finance; Consumer Behaviour
• Link de acesso: https://hdl.handle.net/10438/34920

Purpose - This study explores the effect of sustainability on consumer perceptions of green financial assets and the lag in consumer adoption of sustainable investing practices by investigating perception, relevant heuristics, and behaviour regarding green financial investments. Methodology: This study was conducted on data obtained from a between-subjects design survey inquiring about subjects’ 1) willingness to invest in and 2) their expected return and perceived risk of ESG financial instruments. The ESG financial instruments are represented by Green Funds, which are benchmarked against a sustainability index, and are in contrast to traditional financial instruments that are only benchmarked against performance-based indices. We also collected data on the participants themselves, such as demographics and their environmental values, which enabled us to conduct statistical logistic regression analyses to compare and explore potential correlations across mean investor preferences and demographic factors. Findings - Out of 166 valid responses, it was found that overall consumers are significantly more willing to invest in traditional funds, considering them to provide better performance and lower risk. The two most notable factors affecting attitude towards green investments were a) overall value of the environment and commitment to sustainability and b) age of the respondent. Research Limitations – This research is limited by the survey design, which may not accurately reflect decision making conditions. The sample size and large percentage of North American respondents in the distribution affects confidence and bias in respondents. Originality - This survey was unique to this investigation, and to my knowledge no similar investigation exists with this study design and methodology. Practical Implications - These findings have relevance to private companies, investing platforms, and fund managers seeking to optimize their engagement strategies and to environmental interest groups seeking to influence consumer behaviour and increase the adoption of sustainable investing behaviour. This also provides value to sustainability literature and academia as scholars continue to explore the attitude towards and adoption of sustainable practices by the public.