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Ramirez de Arellano Alvarez, Nicolas (2023) Integration of Environmental Social and Governance Factors into Investment Decisions: Practices, Engagement and Greenwashing in a Latin American Asset Management Context. Masters thesis, Dublin, National College of Ireland.
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Abstract
This research analyses how asset management companies in Latin America engage in creating a positive impact on society through Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) implementation. The study investigates how asset management companies incorporate ESG elements into their business decision-making, including investment decisions, and the factors that drive or hinder their adoption of fully integrated ESG investment approaches.
The methods of this study consist of 8 semi-structured interviews of approximately 45 minutes with investment decision-makers in Latin America in the asset management industry. The results reveal that ESG integration is driven by the desire to mitigate risk in investments. Asset managers recognize that ESG factors can have a relevant impact on investment returns, and are one of the main motivations for considering them when making investment decisions. However, the study also reaffirms that the asset management industry faces several challenges in fully adopting ESG integration, one of which is the lack of relevant ESG information.
Additionally, the study found that asset managers engage in greenwashing tactics to claim sustainability and attract responsible investors. The issue of short-termism is a significant challenge for promoting sustainable investment strategies. This translates into a lack of demand for sustainable products and services, as customers prioritize profitability over sustainability, indicating a disconnect between their values and purchasing behaviour.
The findings of the study have important implications for both the academic community and the business world, particularly in Latin America. Regulators should be aware of the risks of overreliance on third-party providers in the asset management sector. The confirmation of greenwashing practices highlights the need for investment firms to be more transparent and the necessity for stricter legal frameworks for this phenomenon.
| Item Type: | Thesis (Masters) |
|---|---|
| Supervisors: | Name Email Gross, Nicole UNSPECIFIED |
| Subjects: | H Social Sciences > HF Commerce > Business Ethics H Social Sciences > HD Industries. Land use. Labor > Large Industry. Corporations. > Corporate Governance G Geography. Anthropology. Recreation > GE Environmental Sciences > Environment H Social Sciences > HG Finance > Investment > Investment Companies. Investment Trusts. Mutual Funds. |
| Divisions: | School of Business > Master of Science in Management |
| Depositing User: | Tamara Malone |
| Date Deposited: | 22 Aug 2023 15:32 |
| Last Modified: | 22 Aug 2023 15:32 |
| URI: | https://norma.ncirl.ie/id/eprint/6807 |
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