Socially Responsible Investing: Determinants and Conditions for Choice by Individuals

This research concerns the socially responsible investment market, which still remains at an early stage of its formation. Particularly in Russia, this area is a poorly developed segment of the sustainable agenda due to the number of barriers and limited investment attractiveness for individuals in this regard. At present, there is a certain lack of research on the topic of SRI drivers in foreign literature, as well as a significant gap in this kind of knowledge on the Russian market. Thus, the research aims to investigate the factors and conditions for the inclusion of individuals in socially responsible investing in the Russian market and substantiate a system of measures to enhance its appeal to potential individual investors on this basis. For this purpose, multinomial logistic regression apparatus was used on the basis of the survey conducted among Russians using self-developed tools. The study reveals that while only a small percentage of Russians currently invest sustainably, in the future, under certain conditions, the number of socially responsible investors may increase significantly. Based on the simulation results, it was possible to establish that the level of financial literacy of individuals, their awareness of the sustainable development agenda and socially responsible investing, as well as their own socio-environmental preferences had a significant positive relationship with making sustainable investment decisions. At the same time, some behavioral habits also affected the willingness to engage in the SRI practice. The findings allowed to justify the growth potential for the SRI market and outline some fundamental measures to bolster this practice in the Russian market in perspective.