Integrating Sustainability Issues into Investment Decision Evaluation

Authors

  • Olga V. Efimova Financial University, Moscow

Keywords:

Sustainability, investment decision process, ESG integration, ESG risks and opportunities, valuation models.

Abstract

The paper investigates the issues of integrating ESG factors into investment decision-making process. Based on the available investor surveys, academic research, the analysis of the Russian companies` non-financial reports, Bloomberg ESG data, Corporate Sustainability and Responsibility indexes and their sectoral aspects, as well as Russian ecological-stock index ERAX and stock exchange index MICEX dynamics the paper concluded that ESG factors have a material impact on corporate financial performance. At the same time there are barriers to the full ESG integration in the investment process primarily connected with the lack of standardized data, information comparability, reliability, completeness and timeliness; limited knowledge and guidance for ESG risk and opportunity measures and appropriate analytical tools as well as lack of dialogue between the investment community and the reporting companies. To contribute to the problem development this paper presents an approach of integrating ESG factors at different stages of investment analysis and business valuation.

Downloads

Published

2018-11-12

How to Cite

Efimova, O. V. (2018). Integrating Sustainability Issues into Investment Decision Evaluation. Journal of Reviews on Global Economics, 7, 668–681. Retrieved from https://www.lifescienceglobal.com/pms/index.php/jrge/article/view/5732

Issue

Vol. 7 (2018)

Section

Special Issue - Modern Corporate Finance: New Approaches and Decisions

License

Policy for Journals/Articles with Open Access

Authors who publish with this journal agree to the following terms:

  • Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

  • Authors are permitted and encouraged to post links to their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work

Policy for Journals / Manuscript with Paid Access

Authors who publish with this journal agree to the following terms:

  • Publisher retain copyright .

  • Authors are permitted and encouraged to post links to their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work .