This article asks how sustainable investing contributes to societal goals, conducting a literature review on investor impact—that is, the change investors trigger in companies’ environmental and social impact. We distinguish three impact mechanisms: shareholder engagement, capital allocation, indirect impacts, concluding that of engagement is well supported literature, allocation only partially, impacts lack empirical support. Our results suggest who seek should pursue throughout their...

Abstract We assess how investors’ willingness-to-pay (WTP) for sustainable investments responds to the social impact of those investments, using a framed field experiment. While investors have substantial WTP they do not pay significantly more impact. This also holds dedicated investors. When compare several their relative, but absolute, levels Regardless investments’ impact, experience positive emotions when choosing investments. Our findings suggest that is primarily driven by an...

Abstract Practitioners and academics have been using different terms to describe investments in the sustainability context. The latest inflationary term is impact investments—investments that focus on real-world changes of solving social challenges and/or mitigating ecological degradation. At core this definition an emphasis transformational changes. However, investment often used interchangeably for any incorporates environmental, social, governance (ESG) aspects. In latter instance,...

Despite their apparent interest, private investors are surprisingly disengaged from sustainable investing, an observation that has received limited scholarly attention. This theory building study draws on the of planned behaviour to conceptualize decision-making process towards investing. Findings literature provide some insights but do not yield a comprehensive answer as why refrain Interviews with wealthy led us identify generally high interest in investing and dominant barriers prevent...

Abstract We investigate the expectations of wealthy private investors regarding impact and financial return sustainable investments. Our paper focuses on development goals (SDGs) as a framework for investors' attempts to create impact. analyze behavior 60 high‐net‐worth individuals (HNWIs), powerful yet overlooked investor segment. results show large allocations in line with SDGs, which demonstrates these aim achieving real‐word changes. Furthermore, we that “impact investors” have clear...

We assess how investors' willingness-to-pay (WTP) for sustainable investments responds to the impact of those investments, using a framed field experiment. While investors have substantial WTP they do not pay more impact. This also holds dedicated investors. When compare several their differences in but absolute level Investors experience positive emotions when choosing irrespective investments' Our findings suggest that is driven by an emotional rather than calculative valuation

Purpose – Investment advisors play a significant role in financial markets, yet the determinants of their behavior have not been explored detail. The purpose this paper is to explore how actively communicate about sustainable investing with clients, and differences preferences compared investors. Design/methodology/approach Based on survey 296 retail private banking investment advisors, study employs an ordinary least squares regression model activity communicating (SI) aspects that matter...

Sustainable development requires a shift from traditionally invested assets to socially responsible investing (SRI), bringing together financial profits and social welfare. Private high-net-worth individuals (HNWIs) are critical for this as they control nearly half of global wealth. While we know little about HNWIs’ investment behavior, reference group theory suggests that their SRI engagement is influenced by identification with comparison groups. We thus ask: how do groups influence the...

This article asks how sustainable investing (SI) contributes to societal goals, conducting a literature review on investor impact—that is, the change investors trigger in companies' environmental and social impact. We distinguish three impact mechanisms: shareholder engagement, capital allocation, indirect impacts, concluding that of engagement is well supported literature, allocation only partially, impacts lack empirical support. Our results suggest who seek should pursue throughout their...

Purpose This paper aims to empirically describe the general characteristics and investment behavior of high-net-worth individuals (HNWIs) who pursue impact investing. Design/methodology/approach Data was collected from members a global investor network, using an online questionnaire, portfolio-data collection tool semi-structured interviews. Findings Wealthy private investors are largely similar in terms their behavior, but they diverge interest specific Sustainable Development Goals (SDGs)....

Based on data covering 206 buyout funds for the time period 2010-2022, this study examines how utilization of different ESG-management instruments is linked to such funds’ ESG portfolio footprints and financial performance. Improving fund-level by 50% explains a statistically economically significant net IRR increase up 12.4% over fund’s life cycle. The outcome specific private equity investors, as centralised management value enhancement plans, while no effect recorded other measures,...

The sensemaking literature assumes that starts with equivocality and ends a more rational account of reality. Put differently, helps actors reduce equivocality. Powerful actors, however, often benefit from sensegivers may therefore try to prevent less powerful sensemakers resolving We explore this issue by asking: How do who influence the face equivocality? study question looking at sensegiving investment advisors in four different wealth management firms use sell sustainable investing...

This paper investigates how firms assess the authenticity of stakeholder requests. Stakeholder requests are not necessarily authentic, which presents a challenge for firms. Firms need to commit resources response while being uncertain whether will reward or sanction in future. In context environmental, social, and governance (ESG) investing, we perform an analysis interviews on evaluate investor’s ESG We find that by examining underlying resource commitments. contribute salience theory...

The notion that sustainable investing (SI) has become a mainstream investment style is challenged by the observation private investors appear substantially underrepresented in SI compared to institutional investors. This study empirically explores SI-barriers for We provide insights from interviews with High Net Worth Individuals (HNWIs), an economically highly significant yet secretive and thus little researched segment of Our results indicate substantial, individually different interest...