This seminar thesis presents various forms of sustainable investments (SI) and analyses the implications of capital allocation on companies’ behaviour by examining several mechanisms. A further goal is to aggregate the results of 28 academic papers referring to the impacts of SIs. As green finance found broad recognition in recent years, many questions regarding its performance and effects arose and led to general discussions. So, are SIs actually having an impact, or does the financial industry greenwash them to increase profits and prevent regulations?
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 1.1. Arising challenges from an environmental and social perspective
- 1.2. Differentiation between the different forms of investments and their purpose
- 2. Potential mechanisms for solving societal and environmental problems with the help of sustainable investments
- 2.1. The impact of investors providing off-market capital
- 2.2. Effects of the allocation of market capital
- 2.3. Voting and engagement of sustainable investors
- 3. Impact of sustainable investments on companies' behaviour
- 3.1. Overview of methods and papers used
- 3.2. Do sustainable investments actually have an impact on corporate behaviour?
- 4. Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This seminar thesis aims to explore the various forms of sustainable investments (SI) and analyze their impact on companies' behavior by examining several mechanisms. The study aims to aggregate the findings of 28 academic papers related to the effects of SIs. The thesis also investigates the effectiveness of SIs in driving positive environmental and social change, addressing concerns about greenwashing and the potential for financial manipulation.
- The different forms of sustainable investments and their purpose.
- The potential mechanisms for solving societal and environmental problems through sustainable investments.
- The impact of sustainable investments on companies' behavior.
- The challenges and controversies surrounding greenwashing and the need for effective regulation.
- The role of financial institutions and investors in promoting sustainable practices.
Zusammenfassung der Kapitel (Chapter Summaries)
Chapter 1 introduces the concept of sustainable investments (SI) and discusses the arising challenges from an environmental and social perspective. It examines the different forms of investments, including conventional investments, ESG-screened investments, ESG-managed investments, impact-aligned investments, and impact-generating investments, highlighting their respective objectives and strategies.
Chapter 2 delves into the potential mechanisms for solving societal and environmental problems with the help of sustainable investments. It explores the impact of investors providing off-market capital, the effects of the allocation of market capital, and the role of voting and engagement by sustainable investors.
Chapter 3 focuses on the impact of sustainable investments on companies' behavior. It provides an overview of the methods and papers used in the analysis and examines whether sustainable investments have a tangible impact on corporate practices.
Schlüsselwörter (Keywords)
This seminar thesis focuses on the impact of sustainable investments (SI) on companies' behavior. Key terms and concepts explored include ESG (Environment, Social, and Governance), greenwashing, impact-aligned investments, sustainable development goals (SDGs), and the allocation of market capital. The study examines various investment strategies and their effectiveness in addressing environmental and social challenges.
- Quote paper
- Maxim Chalotra (Author), 2022, The Impact of Sustainable Investments on Companies’ Behaviour. Nudging Companies Towards More Sustainability, Munich, GRIN Verlag, https://www.grin.com/document/1300852
