Why don't we see more action? A metasynthesis of the investor impediments to integrate environmental, social, and governance factors

Investors increasingly commit to consider environmental, social, and governance (ESG) factors in their investment decisions. However, the challenges of investors for a holistic integration of ESG factors in their investment decisions are manifold and endanger reaching urgent societal goals. The paper uses metasynthesis to develop a comprehensive understanding of these impediments from a diverse set of papers. Supported by textual analysis, it identifies 161 different topics, which are subsumed within groups and aggregated along a four-pillar framework of market-, firm-, regulatory-, and individual-based impediments. The most prominent impediments are found in the areas of a perceived lack of a business case, the quality of data, the absence of clear standards and definitions, and various behavioral biases. Moreover, a considerable research-practice gap in framing the relevant research questions that contribute to the slow-moving integration process is discovered. Focusing additionally on potential blind spots on the investor and research sides will prove to be important for swifter ESG integration.