IDEAS home Printed from https://ideas.repec.org/a/url/izvest/v21y2020i4p63-78.html
   My bibliography  Save this article

Development of responsible investment within the concept of sustainable finance

Author

Listed:
  • Viktor P. Ivanitsk

    (Ural State University of Economics, Ekaterinburg, Russia)

  • Larisa D. Petrenko

    (Industrial University of Tyumen, Tyumen, Russia)

Abstract

The strengthening of globalisation processes together with the climate change, the slowdown of the world economy, and growing income inequality have a profound impact on the transformation of the global economic and socio-political landscape and make the theme of sustainable development progressively more relevant. The environmental trend within the humancentered trajectory of civilization affects the financial sphere through the introduction of the Environmental, Social, and Governance (ESG) criteria in financial decision-making, creation of appropriate institutions and accumulation of financial resources, as well as transformation of financial systems’ functions. Against a background of these trends, responsible investment, or ESG investing, which takes into account environmental, social and managerial factors when choosing investment strategies, receives a significant boost. The aim of the research is to formulate new approaches to expanding responsible investment in the economy in the context of developing sustainable finance. The methodological basis of the research includes the concepts of sustainable development, finance and investment. The study uses a dialectical method to investigate the dynamics of economic phenomena, their interrelation and interdependence; and a system approach to the object of research implemented through graphic representation, grouping and comparison, analysis and synthesis. The paper summarises the theory and practice of responsible investment, examines the trends in the responsible investment market as well as its peculiarities. The authors prove the need to encourage responsible investment within the sustainable finance framework by removing information and structural restrictions. This will ensure the development of responsible investment tools and gain greater reputational advantages for companies. The authors produce recommendations for organising this process, in particular, to employ international practices and adopt the corresponding government policy.

Suggested Citation

  • Viktor P. Ivanitsk & Larisa D. Petrenko, 2020. "Development of responsible investment within the concept of sustainable finance," Journal of New Economy, Ural State University of Economics, vol. 21(4), pages 63-78, December.
    • Handle: RePEc:url:izvest:v:21:y:2020:i:4:p:63-78
    DOI: 10.29141/2658-5081-2020-21-4-4
    as

    Download full text from publisher

    File URL: http://jne.usue.ru/images/download/89/4.pdf
    Download Restriction: no
    File URL: http://jne.usue.ru/ru/2020/938
    Download Restriction: no
    File URL: https://libkey.io/10.29141/2658-5081-2020-21-4-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rajesh Kumar Bhaskaran & Irene Wei Kiong Ting & Sujit K. Sukumaran & Saraswathy Divakaran Sumod, 2020. "Environmental, social and governance initiatives and wealth creation for firms: An empirical examination," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(5), pages 710-729, July.
    2. Satyajit Bose & Guo Dong & Anne Simpson, 2019. "Sustainable Investing and Asset Allocation at Global Scale," Palgrave Studies in Impact Finance, in: The Financial Ecosystem, chapter 0, pages 225-251, Palgrave Macmillan.
    3. Satyajit Bose & Guo Dong & Anne Simpson, 2019. "The Financial Ecosystem," Palgrave Studies in Impact Finance, Palgrave Macmillan, number 978-3-030-05624-7.
    4. Philipp Krueger & Zacharias Sautner & Laura T Starks, 2020. "The Importance of Climate Risks for Institutional Investors," The Review of Financial Studies, Society for Financial Studies, vol. 33(3), pages 1067-1111.
    5. Dan-Costin Nitescu & Maria-Alexandra Cristea, 2020. "Environmental, Social and Governance Risks – New Challenges for the Banking Business Sustainability," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 22(55), pages 692-692, August.
    6. Satyajit Bose & Guo Dong & Anne Simpson, 2019. "The Financial Ecosystem," Palgrave Studies in Impact Finance, in: The Financial Ecosystem, chapter 0, pages 19-46, Palgrave Macmillan.
    7. Thiermann, Ute B. & Sheate, William R., 2020. "Motivating individuals for social transition: The 2-pathway model and experiential strategies for pro-environmental behaviour," Ecological Economics, Elsevier, vol. 174(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Larisa D. Petrenko, 2021. "Green Trend in Global Energy Development: Tendencies and Opportunities," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 1-7.
    2. Yohanes Boni & Wa Ode Rachmasari Ariani & Hasddin Hasddin, 2023. "Study of Environmental Economic Performance According to Energy Use and CO2 Emissions, Air Quality, and Government Policies to Achieve SDGs in Baubau City," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 452-462, November.
    3. Hasddin & Abd. Azis Muthalib & Edward Ngii & Asrip Putera, 2022. "The Ability of Green Open Spaces in Greenhouse Gas Control to Achieve Green Cities in Kendari City," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 327-331.
    4. Larisa D. Petrenko & Bahodirhon Sh. Safarov, 2022. "Prospects for Nuclear Energy in the Framework of Implementation of the Sustainable Development Concept," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 5, pages 59-70, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jingyang Wu & Xinyi Zhang & Fangyixuan Huang & Haochen Zhou & Rohtiash Chandra, 2024. "Review of deep learning models for crypto price prediction: implementation and evaluation," Papers 2405.11431, arXiv.org, revised Jun 2024.
    2. Muntasir Murshed & Kashif Abbass & Seemran Rashid, 2021. "Modelling renewable energy adoption across south Asian economies: Empirical evidence from Bangladesh, India, Pakistan and Sri Lanka," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 5425-5450, October.
    3. Vuk Mirčetić & Tatjana Ivanović & Snežana Knežević & Vesna Bogojević Arsić & Tijana Obradović & Darjan Karabašević & Svetlana Vukotić & Tomislav Brzaković & Miljan Adamović & Stefan Milojević & Marko , 2022. "The Innovative Human Resource Management Framework: Impact of Green Competencies on Organisational Performance," Sustainability, MDPI, vol. 14(5), pages 1-19, February.
    4. Phallapa Petison & Sooksan Kantabutra, 2022. "A Quest for a Sustainable Social Enterprise Model: The Case of Amphawa Chaipattananurak, the Kingdom of Thailand," Sustainability, MDPI, vol. 15(1), pages 1-31, December.
    5. Osvaldo García-Mata & Mariana Zerón-Félix, 2022. "A review of the theoretical foundations of financial well-being," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(2), pages 145-176, June.
    6. Herwig Buchholz & Thomas Eberle & Manfred Klevesath & Alexandra Jürgens & Douglas Beal & Alexander Baic & Joanna Radeke, 2020. "Forward Thinking for Sustainable Business Value: A New Method for Impact Valuation," Sustainability, MDPI, vol. 12(20), pages 1-16, October.
    7. Beata Zyznarska-Dworczak, 2020. "Sustainability Accounting—Cognitive and Conceptual Approach," Sustainability, MDPI, vol. 12(23), pages 1-24, November.
    8. Caroline Flammer & Michael W. Toffel & Kala Viswanathan, 2021. "Shareholder activism and firms' voluntary disclosure of climate change risks," Strategic Management Journal, Wiley Blackwell, vol. 42(10), pages 1850-1879, October.
    9. Cortez, Maria Céu & Andrade, Nuno & Silva, Florinda, 2022. "The environmental and financial performance of green energy investments: European evidence," Ecological Economics, Elsevier, vol. 197(C).
    10. Andreas Wagner & Denise Fischer‐Kreer, 2024. "The role of CEO regulatory focus in increasing or reducing corporate carbon emissions," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 1051-1065, February.
    11. Le, Trung H. & Pham, Linh & Do, Hung X., 2023. "Price risk transmissions in the water-energy-food nexus: Impacts of climate risks and portfolio implications," Energy Economics, Elsevier, vol. 124(C).
    12. Zirek, Duygu & Unsal, Omer, 2023. "Green bonds: Do investors benefit from third-party certification?," Global Finance Journal, Elsevier, vol. 58(C).
    13. Homroy, Swarnodeep, 2023. "GHG emissions and firm performance: The role of CEO gender socialization," Journal of Banking & Finance, Elsevier, vol. 148(C).
    14. Stefano Giglio & Bryan Kelly & Johannes Stroebel, 2021. "Climate Finance," Annual Review of Financial Economics, Annual Reviews, vol. 13(1), pages 15-36, November.
    15. Ferriani, Fabrizio, 2023. "Issuing bonds during the Covid-19 pandemic: Was there an ESG premium?," International Review of Financial Analysis, Elsevier, vol. 88(C).
    16. Laeven, Luc & Popov, Alexander, 2023. "Carbon taxes and the geography of fossil lending," Journal of International Economics, Elsevier, vol. 144(C).
    17. Kentaro Azuma & Akira Higashida, 2024. "Climate change disclosure and evolving institutional investor salience: Roles of the Principles for Responsible Investment," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3669-3686, May.
    18. Martinsson, Gustav & Sajtos, László & Strömberg, Per & Thomann, Christian, 2022. "Carbon Pricing and Firm-Level CO2 Abatement: Evidence from a Quarter of a Century-Long Panel," Misum Working Paper Series 2022-10, Stockholm School of Economics, Mistra Center for Sustainable Markets (Misum).
    19. Ali Uyar & Simone Pizzi & Fabio Caputo & Cemil Kuzey & Abdullah S. Karaman, 2022. "Do shareholders reward or punish risky firms due to CSR reporting and assurance?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1596-1620, July.
    20. Döttling, Robin & Lam, Adrian, 2023. "Does Monetary Policy Shape the Path to Carbon Neutrality?," OSF Preprints kqdar, Center for Open Science.

    More about this item

    Keywords

    sustainable development; sustainable finance; responsible investment; environmental trend; responsible investment market;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:url:izvest:v:21:y:2020:i:4:p:63-78. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Victor Blaginin (email available below). General contact details of provider: https://edirc.repec.org/data/usueeru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.