Retail investors' ESG-preferences: Is there something to find under the blanket term of ESG?

Abstract: Environment, Social and Governance factors within Socially Responsible Investing and sustainability have been widely discussed subjects. In light of an increasing amount of research and interest into capital allocation towards SRI and ESG, this study aims to fill the research gap on what drives investments in ESG in Sweden from retail investors. By conducting real-world research through a survey, this thesis investigates the subfactors of the very broad term ESG. The study finds significant evidence that there are certain subfactors of the respective ESG-factors that drive the interest into main factors. The survey also finds results that indicate that research conducted on the area should focus more on the subfactors. Additionally, we find evidence suggesting that retail investors place more importance on the Social and Governance factors if they have a preference for Financial, Moral and Reputational values, whereas for the environmental factor only the Financial and Moral value play a part, but not Reputational value.