Exploring investment prospects in green securities and specialized investments for a greener future

Chandan Dutta

Abstract


With each passing day, the world is becoming more environmentally conscious. In this changing perspective, investors are also increasingly seeking investment opportunities that prioritize sustainability whether the investment option is in company securities or projects. Green investing, which focuses on companies and assets committed towards the conservation of natural resources is increasingly becoming more popular. This article explores specialized green securities and investment opportunities like green index funds, green mutual funds, green bonds, and green exchange-traded funds (ETFs). It also discusses the challenges of defining and measuring green investments, and the drivers of such investments. It examines the concept of sustainable investing, and environmental, social, and corporate governance (ESG) factors, and how these are impacting the investment landscape. The article hopes to provide readers with an understanding of green securities and specialized investments, and how such investors can contribute to a greener future by focusing on the same.

Keywords: Green securities, Specialized investments, Sustainable investing, Environmental, social, and governance (ESG), Socially responsible investing (SRI), Greenwashing.


Full Text:

PDF

References


Ehlers, T., & Packer, F. (2017). Green bond finance and certification. Bank for International Settlements (BIS). https://www.bis.org/publ/qtrpdf/r_qt1709h.htm

Embracing Sustainable Investment Practices with ESG Investing. (n.d.). Department of Financial Protection and Innovation (DFPI). Retrieved May 29, 2023, from https://dfpi.ca.gov/2023/04/19/esg-investing/

Boffo, R., & R. Patalano. (2020). ESG Investing: Practices, Progress and Challenges. OECD.

Segal, T. (2022, September 21). Green Bond: Types, How to Buy, and FAQs. Investopedia Article. https://www.investopedia.com/terms/g/green-bond.asp

Tamplin, T. (2023). Green Bonds | Definition, Types, Benefits, Limitations, & Trends. Finance Strategists. https://www.financestrategists.com/wealth-management/bonds/green-bonds/

Kaminker, C. (2015). Green bonds: Mobilising the debt capital markets for a low-carbon transition. OECD.

Climate Bonds Initiative. (2018). Green Bonds: The State of the Market. OECD Working Papers on Finance, Insurance and Private Pensions, No.24.

Green Investing Definition. (n.d.). Retrieved May 29, 2023, from https://www.investopedia.com/terms/g/green-investing.asp

What are Green Securities? (n.d.). Green Securities - Green Communities. Retrieved May 29, 2023, from https://greencommunities.com/securities/

Inderst, G., Kaminker, C., & Stewart, F. (2012). Defining and Measuring Green Investments: Implications for Institutional Investors‟ Asset Allocations. OECD Working Papers on Finance, Insurance and Private Pensions, No.24. www.oecd.org/daf/fin/wp

Moskowitz, D. (2022, September 27). Opportunities and Risks of Green Bond Investing. Investopedia. https://www.investopedia.com/articles/investing/081115/green-bonds-benefits-and-risks.asp

Eccles, R. G., & Klimenko, S. (2019). Shareholders Are Getting Serious About Sustainability. HBR. https://hbr.org/2019/05/the-investor-revolution

Lester, A. (2021). Sustainable Bonds Insight. OECD Working Papers on Finance, Insurance and Private Pensions, No.24. www.environmental-finance.com

Zichal, H. (2019, January 22). Three Big Trends in Sustainable Business. Sustainable Trends in Business and Finance. https://www.nature.org/en-us/what-we-do/our-insights/perspectives/three-big-trends-in-sustainable-business/

Understanding Green, Social and Sustainability Bonds. (n.d.). PIMCO. Retrieved May 29, 2023, from https://www.pimco.com/en-us/resources/education/understanding-green-social-and-sustainability-bonds/

Stobierski, T. (2022, July 14). What Is Sustainable Investing? HBS Online. https://online.hbs.edu/blog/post/sustainable-investing


Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Journal of Management in Practice (Online Only)