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Why don't we see more action? A metasynthesis of the investor impediments to integrate environmental, social, and governance factors

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  • Gunnar Friede

Abstract

Investors increasingly commit to consider environmental, social, and governance (ESG) factors in their investment decisions. However, the challenges of investors for a holistic integration of ESG factors in their investment decisions are manifold and endanger reaching urgent societal goals. The paper uses metasynthesis to develop a comprehensive understanding of these impediments from a diverse set of papers. Supported by textual analysis, it identifies 161 different topics, which are subsumed within groups and aggregated along a four‐pillar framework of market‐, firm‐, regulatory‐, and individual‐based impediments. The most prominent impediments are found in the areas of a perceived lack of a business case, the quality of data, the absence of clear standards and definitions, and various behavioral biases. Moreover, a considerable research–practice gap in framing the relevant research questions that contribute to the slow‐moving integration process is discovered. Focusing additionally on potential blind spots on the investor and research sides will prove to be important for swifter ESG integration.

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  • Gunnar Friede, 2019. "Why don't we see more action? A metasynthesis of the investor impediments to integrate environmental, social, and governance factors," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1260-1282, September.
    • Handle: RePEc:bla:bstrat:v:28:y:2019:i:6:p:1260-1282
    DOI: 10.1002/bse.2346
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    8. Borges da Silva, Eduardo & Emanuel M. Oliveira, Vitor, 2022. "Uma análise de otimização asg à luz das premissas de finanças comportamentais [An analysis of esg optimization in the light of behavioral finance]," MPRA Paper 115510, University Library of Munich, Germany.
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    15. Chen, Zhongfei & Xie, Guanxia, 2022. "ESG disclosure and financial performance: Moderating role of ESG investors," International Review of Financial Analysis, Elsevier, vol. 83(C).
    16. Paola Demartini & Claudia Pagliei, 2023. "Can we trust ESG Ratings? Some insights based on a bibliometric analysis of ESG data quality and rating reliability," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2023(2 Suppl.), pages 161-187.
    17. Felipe Arias Fogliano de Souza Cunha & Erick Meira de Oliveira & Renato J. Orsato & Marcelo Cabus Klotzle & Fernando Luiz Cyrino Oliveira & Rodrigo Goyannes Gusmão Caiado, 2020. "Can sustainable investments outperform traditional benchmarks? Evidence from global stock markets," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 682-697, February.
    18. Karoline Bax & Ozge Sahin & Claudia Czado & Sandra Paterlini, 2021. "ESG, Risk, and (Tail) Dependence," Papers 2105.07248, arXiv.org, revised Nov 2021.
    19. Alaa Aldowaish & Jiro Kokuryo & Othman Almazyad & Hoe Chin Goi, 2022. "Environmental, Social, and Governance Integration into the Business Model: Literature Review and Research Agenda," Sustainability, MDPI, vol. 14(5), pages 1-20, March.

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