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The influence of ESG on investment decision making in the investment management and capital markets sector

Mini Dissertation (MBA)--University of Pretoria, 2024.

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Other Authors: Fairhurst, Keith
Format: Thesis
Language:English
Published: University of Pretoria 2025
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access_status_str Open Access
author2 Fairhurst, Keith
author_browse Fairhurst, Keith
author_facet Fairhurst, Keith
collection Thesis
dc_rights_str_mv © 2024 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.
description Mini Dissertation (MBA)--University of Pretoria, 2024.
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institution University of Pretoria (South Africa)
language English
last_indexed 2026-06-10T12:36:13.892Z
license_str Other — see source repository
provenance_str_mv Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository
publishDate 2025
publishDateRange 2025
publishDateSort 2025
publisher University of Pretoria
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spelling oai:repository.up.ac.za:2263/102014 The influence of ESG on investment decision making in the investment management and capital markets sector Fairhurst, Keith ichelp@gibs.co.za Moodley, Kresan UCTD Investment Decision Making Risk Mitigation Due Diligence Regulation Opportunity Identification ESG Criteria and Metrics Social Initiatives Mini Dissertation (MBA)--University of Pretoria, 2024. This research project explores the influence of Environmental, Social, and Governance (ESG) factors on investment decision-making processes within the South African investment management and capital markets sector. As global awareness of sustainability and social responsibility continues to rise, understanding how ESG considerations are integrated into investment strategies has become increasingly vital. This study employs a qualitative methodology, utilizing semi-structured interviews with 14 professionals from various sectors, including ESG advisory, investment management, and corporate development. Through a thematic analysis of the interview data, several key findings emerged. First, ESG factors are consistently regarded as essential components of investment evaluation, a sentiment driven by mounting pressures from investors and a progressively rigorous regulatory landscape. These pressures not only emphasize the importance of ESG in promoting ethical business practices but also reveal a broader shift in market expectations toward long-term sustainability. South African investment management firms are increasingly developing internally tailored methodologies to effectively integrate ESG metrics into their decision-making processes, reflecting a proactive approach to aligning with global standards and investor expectations. Despite these efforts, significant challenges persist, particularly in measuring social impact and addressing limited expertise and resources in the ESG domain. Many firms struggle to quantify social metrics effectively, often lacking the tools or frameworks needed to gauge long-term social outcomes accurately. The study also demonstrates that while ESG integration is gaining traction in South Africa, it is influenced by unique socio-economic factors and a regulatory environment that shapes corporate responsibility expectations in distinct ways. These include the local emphasis on social equity, transformation, and inclusion within a post-apartheid context, which adds layers of complexity to ESG practices not typically encountered in developed markets. Furthermore, the country’s evolving regulatory frameworks around ESG impact create a dynamic compliance landscape, challenging firms to keep pace with changing standards while striving for genuine ESG impact. This study contributes to the existing body of literature by emphasizing the specific dynamics of ESG adoption in a developing economy context. It provides insights into the evolving landscape of responsible investing in South Africa, where local economic conditions and social imperatives shape ESG adoption uniquely. Recommendations are offered to strengthen ESG integration practices, alongside suggestions for future research to further explore the complexities and potential impacts of ESG on investment decision-making. In conclusion, this research highlights the critical role of ESG factors in shaping investment strategies and highlights the necessity for investment managers and stakeholders to adapt to the growing demand for responsible investment practices. By addressing the identified challenges and leveraging the opportunities presented by ESG integration, South African investment management and capital markets firms have the potential to enhance their investment decision-making processes, ultimately contributing to a more sustainable and equitable economic landscape. Gordon Institute of Business Science (GIBS) MBA Unrestricted Gordon Institute of Business Science (GIBS) SDG-06:Clean water and sanitation SDG-08:Decent work and economic growth SDG-09: Industry, innovation and infrastructure SDG-11:Sustainable cities and communities SDG-12:Responsible consumption and production SDG-16:Peace,justice and strong institutions 2025-04-11T07:49:53Z 2025-04-11T07:49:53Z 2025-05-05 2024-11 Mini Dissertation * A2025 http://hdl.handle.net/2263/102014 en © 2024 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria
spellingShingle UCTD
Investment Decision Making
Risk Mitigation
Due Diligence
Regulation
Opportunity Identification
ESG Criteria and Metrics
Social Initiatives
The influence of ESG on investment decision making in the investment management and capital markets sector
title The influence of ESG on investment decision making in the investment management and capital markets sector
title_full The influence of ESG on investment decision making in the investment management and capital markets sector
title_fullStr The influence of ESG on investment decision making in the investment management and capital markets sector
title_full_unstemmed The influence of ESG on investment decision making in the investment management and capital markets sector
title_short The influence of ESG on investment decision making in the investment management and capital markets sector
title_sort influence of esg on investment decision making in the investment management and capital markets sector
topic UCTD
Investment Decision Making
Risk Mitigation
Due Diligence
Regulation
Opportunity Identification
ESG Criteria and Metrics
Social Initiatives
url http://hdl.handle.net/2263/102014