Unveiling Investor Perspectives: Awareness, Motivations, and Behaviours in Kolkata’s Sustainable Finance Landscape

Abstract

Sustainable investment is shaped by a range of factors, including growing environmental concerns related to climate change and resource depletion, a commitment to ethical practices and social equity, and an emphasis on robust corporate governance and transparency. Additionally, regulatory incentives and policies play a role, as do the potential for competitive financial returns and effective risk management. The alignment with market trends and the increasing consumer demand for sustainability further bolster corporate reputation, motivating investors to pursue sustainable finance opportunities. This study aims to assess the awareness and understanding of sustainable finance concepts among investors in Kolkata. It will explore how these investors perceive the benefits and risks of sustainable investments and identify the key factors influencing their interest in such financial options. The need for heightened awareness of sustainable finance is critical, as it contributes significantly to advancing the United Nations' 2030 Sustainable Development Goals (SDGs). By channeling investments toward initiatives that foster economic growth, environmental protection, and social equity, sustainable finance supports objectives such as poverty reduction, the expansion of clean energy, job creation, innovation, and the development of sustainable cities. It also aids in promoting responsible consumption and production, climate action, and the preservation of marine and terrestrial ecosystems. Aligning financial flows with these global priorities allows sustainable finance to address urgent challenges and drive progress toward a more sustainable and equitable future. The study employs descriptive statistics to evaluate the awareness levels and motivational factors among investors in Kolkata. A purposive sampling method was utilized, with a sample size of 130 participants. The findings indicate that while investors demonstrate an awareness of sustainable finance, their knowledge of the associated benefits and risks remains limited.