The future of investing – sustainable and responsible investing

Abstract

THE FUTURE OF INVESTING-SUSTAINABLE AND RESPONSIBLE INVESTING The objective of this paper has been the comparison of the selected sustainable and responsible funds in the aspect of positive and negative selection, and also the identification of attitudes of the selected millennials to SRI investing (focusing on environmental, social and governance factors). The approaches to define the methods of selecting investment instruments were analysed and systematized by the authors. The systematized scientific literature allowed to establish that sustainable investing, focusing on environmental, social and governance factors (ESG), addresses not only healthy corporate behaviour, but often keeps the capital safe. Selected funds from the Barron's Magazine and the data from the Bloomberg's ESG Data Service have been used as the source data. It has been established from the available screened data that there are two funds focusing on positive selection in the environmental, social and governance areas. None of these funds is focused explicitly on negative selection only. In the ESG areas, positive selection and/or combination of positive and negative selection has its firm place. Negative choice, however, is applied predominantly within products. With respect to intergenerational differences in the investment approaches, a particular group of millennials, FBE MENDEL students, and their attitudes and views concerning the SRI has been monitored. The research has been performed in the form of an online questionnaire survey, where 96 bachelor-degree students have been engaged, 68 women and 28 men. The following nationalities are included among the respondents: Czech (69), Slovak (21), Russian (3), Ukrainian (1), Belarusian (1) and Kazakh (1). It has been established that the expected return would still prevail over sustainability and social responsibility in case of their own selection of the investment instrument, however, if the SRI investment option is offered, for example, by an investment adviser, the majority of the respondents would be willing to use this investment instrument even at the expense of a lower return.

Shadow Economy and its Impact on Demand at the Investment Market of the Country

“…Some of them have argued that the shadow economy impeded the investment growth. However, there are a lot of studies identifying the shadow economy as an important determinant of the FDI attracted by a country (Wei, 2000;Cleeve, 2008;Al-Sadig, 2007;Asiedu, 2006;Morrissey et al, 2012;Omidie et al, 2017, Formankova et al, 2018Nunes et al, 2017).…”

Impact of digitalization and the COVID-19 pandemic on the AML scenario: Data mining analysis for good governance

“…Numerous studies deal with the analysis of the digitalization impact on the functioning of financial markets, in particular, determining the impact of financial technologies on capital markets (Paskevicius & Keliuotyte-Staniuleniene, 2018), assessing the digitalization of financial services (Pakhnenko et al, 2021), studying the features of e-banking (Alam et al, 2021), analysis of prospects for investing-sustainable and responsible investing in the digital age (Formankova et al, 2018).…”

Environmental taxes in ensuring national security: A structural optimization model

“…2020;Didenko et al, 2020;Dkhili, 2018). All this is exacerbated by political, legal, economic and social factors: imperfection of the legal framework for environmental law, insufficient efficiency of nature protection systems, improper organization of state control over the activities of entities that pollute or may adversely affect the environment, national economic situation, insufficient funding of the environmental sector, inefficient system of environmental taxation, unconscious environmental culture of society and others (Eddassi, H. 2020;Formankovaа, et al, 2018;He, 2019;Lyulyov et al, 2021). In turn, environmental threats significantly affect the general situation of the country, its safe functioning, the ability of public authorities to promptly intervene in emerging environmental problems, make necessary decisions and take appropriate action to address them effectively, determine the ability of people to consciously assess the importance of the environment.…”