Integration of non-financial information in investment decision making by institutional investors

Abstract

There has been a steady rise in demand for business to be transparent about their environmental, social and governance (ESG) performance, and their social impact in the economies they operate in. This has given rise to an emerging trend worldwide in the investor community that has been met with and increasing uptake of “sustainability reporting”. The aim of this exploratory study is to review the growing demand for non-financial information by investors and its use in the investment decision – making process of institutional investors.Structured interviews were conducted with eight South African institutional investors and the results were analysed using a data mapping technique and content analysis.Structured interviews were conducted with eight South African institutional investors and the results were analysed using a data mapping technique and content analysis.