Author: I. Shmorhun, PhD student, ORCID ID: 0000-0003-0371-3607
Taras Shevchenko National University of Kyiv, Kyiv, Ukraine
Annotation: The article is devoted to analyzing the concept of sustainable international portfolio investment and the main features and differences from traditional international portfolio investment. It was found that there are practically no definitions of sustainable international portfolio investment in academic literature of domestic and foreign authors. The notions of the categories “sustainable investment” and “international portfolio investments” were considered and analyzed discretely. The sustainable international portfolio investment is treated as the process of investing funds by investment market actors through purchasing foreign securities of issuers (companies or countries) conducting business activities in compliance with environmental, social, and governance factors or green bonds to obtain investment benefits with mandatory consideration of (ESG) criteria.
Comparative characterization of traditional and sustainable international portfolio investment was carried out regarding for such features as the
essence, time period, and ultimate goal. Specific features of sustainable international portfolio investment were identified: investing in foreign
financial instruments (mainly shares and bonds) taking into account social, environmental and governance criteria of companies or countries;
investment objects do not include such traditional investment instruments as derivative financial instruments due to the fact that they have a
speculative focus; the primary goal is to maximize profits and minimize risks, with mandatory consideration of ESG criteria; consideration of specific types of risk (ecological, social and governance).
Keywords: sustainable international portfolio investment, sustainable investment, international portfolio investments, green securities, sustainable development.
1st Revision: 25/08/2022
References (in Latin): Translation / Transliteration/ Transcription
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