Business Ethics the Environment & Responsibility · 2023 · 44 citations · 124 references
EngineeringSustainability GovernanceSustainable DevelopmentEnvironmental, Social, And GovernanceEnvironmental EconomicsEnvironmental PlanningEnvironmental PolicyGovernance InvestingReflexive Environmental GovernanceGreen FinanceResponsible InvestorsEnvironmental GovernancePublic PolicyEconomicsEthical InvestingSystematic Literature ReviewEthical InvestmentAccountingCorporate Social ResponsibilityAbstract EnvironmentalSocial FinanceFinanceEsg PerformanceSustainable FinanceInvestmentBusinessSustainabilitySustainable InvestmentEsg Investing
ESG investing, synonymous with sustainable investment, has grown rapidly but remains underexplored, with most literature focusing on performance rather than the diversity of ESG practices. The study aims to map and analyze the ESG investing literature to identify key research themes and broaden the agenda for future research. Using bibliometric mapping, the review identifies four major themes—investor behavior, cost and risk mitigation, portfolio screening, and ESG performance—and critically examines each to highlight theoretical and recent trends. The review reveals thematic overlaps and heterogeneity in ESG investing, and identifies greenwashing as a primary concern for investors.
Abstract Environmental, social, and governance (ESG) investing is synonymous with sustainable investment for socially responsible investors. Unfortunately, the diversity of ESG investing remains unattended amidst the growth in ESG literature, as the academic literature focuses dominantly on measuring performance. An understanding of a wide range of subjects entailing ESG is required before future research on ESG investing is performed. To overcome the challenge, this systematic literature review uses bibliometric mapping to reveal four significant research themes within the ESG investing literature: investor behavior and motivations for ESG investing; cost and risk mitigation in ESG investing; portfolio screening and ESG investing; and ESG performance. The review critically examines each theme and broadens the research agenda for future studies. In addition to the significant themes, this paper also discusses theoretical and recent research trends in the ESG investing literature. The review identifies clashes and crossovers between these themes to appropriately interpret one theme using another and emphasizes the heterogeneity in ESG investing. Lastly, discussion over concerns and criticisms of ESG investing highlights greenwashing as a major cause of concern for investors.
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