New research in the Journal of Applied Psychology shows that people are more ready to change their behaviour and become more green if they are presented with an associated personal benefit. As the BPS Research Digest explains, people reacted more positively to changing their daily commute from private to public transportation when the proposal was presented showing financial and health benefits, rather than when it was only linked to environmental considerations.
What this means for the financial industry seems obvious. The more we can show how ESG is linked to performance improvement or marketing advantages, the more inclined fund managers will be to integrate the approach into their investment process.
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