 International practice of socially responsible investment: analysis of current trendsMikhail N. Korablin
Economic Consultant, 2024, issue 1, 20-33 Abstract: Introduction. The relevance of this article lies in the fact that the modern stock market is a dynamic and constantly evolving system that reacts swiftly to changes in the external environment. In recent years, global events have significantly heightened unpredictability and volatility in development processes, profoundly influencing the growth of socially responsible investing within this market segment. Materials and methods. The research materials included scientific publications and articles, particularly studies and reviews from journals in the fields of economics, finance, and sustainable development, with a focus on socially responsible investing (SRI) and ESG factors. The methodological foundation of the study was based on general scientific methods such as analysis and synthesis, and the integration of historical and logical approaches, as well as specific evaluative techniques, including the observation of key indicators and expert assessments. Results. The dynamics of the global socially responsible investment (SRI) market are examined, with particular attention given to the primary forms of state support for SRI in foreign countries, which represent a key component of the effective functioning of the SRI ecosystem. The main challenges facing the SRI market at the current stage are also identified. A critical issue in the development of the SRI market today is the absence of a universally accepted and integrated methodology, along with standardized frameworks and evaluation methods for tracking the allocation of securities and the use of proceeds in alignment with ESG objectives. This gap complicates the assessment of SRI effectiveness, increases the risk of greenwashing, and undermines investor confidence in SRI instruments. The development of a unified approach to evaluating the effectiveness of SRI – together with the establishment of standardized criteria and principles for responsible investment – will help improve social welfare, address environmental challenges, and support more effective and sustainable economic development globally. Conclusion. At the current stage, the socially responsible investment (SRI) market is not merely emerging as a new segment of the broader investment landscape; it also reflects a fundamental transformation in the model of interaction between business, society, and the state. SRI is increasingly functioning as a kind of “auto-calibration tool” that facilitates the attainment of a new, stable equilibrium within national economic systems, aligned with global dynamics. This, in turn, contributes to addressing environmental and social challenges and supports the more effective and sustainable economic development of individual countries. Keywords: socially responsible investing; SRI; ESG standards; SRI efficiency assessment; startup; venture inve (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ris:statec:021443 Access Statistics for this article Economic Consultant is currently edited by Roman I. Ostapenko More articles in Economic Consultant from Scientific and Educational Initiative LLC |
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