Resource description:
Despite the inclusion of biodiversity objectives in sustainable finance taxonomies, their consideration in investment decisions remains limited. This review identifies key behavioural, informational and institutional barriers that inhibit the alignment of individual investment actions with their nature-conscious preferences. The literature highlights barriers across several dimensions that result in a misalignment of individuals preferences and actual investment behaviour. These barriers emerge from cognitive biases, financial literacy, information asymmetries and structural constraints such as pension system design and implementation. We identify areas for future research on behavioural interventions, fiduciary responsibility and the integration of biodiversity data in financial labelling and decision-making tools that can advance the integration of nature data in investment decisions.
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Author/Contact:
Ciara Clohessy, Vasilis Grigoriadis, Fergal O'Brien, John Garvey