Moritz Burghardt

  School of Business and Economics | Bachelor International Business

Behavioral Incentives in Sustainable Investing: A Comparison of Individual and Institutional Investors

Moritz's elevator pitch
Sustainable investing has grown to over $35 trillion in assets, yet research on investor motivations lags behind market adoption. This literature review investigates the behavioral incentives motivating individual and institutional investors by challenging homo economicus assumptions. The study reveals a complex interplay between values and value, demonstrating how return expectations and warm glow effects drive sustainable investment decisions. Individual investors prioritize emotional utility, while institutional investors balance fiduciary duty, risk management, and regulatory pressures. By exploring the intricate motivations across investor groups, the research provides critical insights for advancing sustainable finance theory and practice.