Consumers’ sustainable investing: A systematic literature review and research agenda

Abstract

This systematic literature review addresses a critical gap in the existing literature by providing one of the first comprehensive syntheses of retail investors' decision-making processes within the sustainable investment context, analyzing 70 empirical articles published in top-tier journals from 2014 to 2023. Utilizing the Antecedents-Decisions-Outcomes and the Theories-Contexts-Methods (ADO-TCM) organizing framework and integrating a consumer behavior perspective, we reveal intricate dynamics influencing investment choices. Notably, while behavioral intentions (60% of articles) and actual investment decisions (23%) are frequently studied, the literature lacks focus on post-investment behavior and decision consequences.

Despite growing research interest in consumer sustainable investing, the literature predominantly focuses on high-income economies (63%). Interestingly, current research utilizes diverse theories but often concentrates on a few dominant ones. This review extends the ADO-TCM framework to the specific context of retail sustainable investing, highlighting the interaction of the consumer behavior lens with existing financial theories. This review offers a comprehensive overview and identifies research gaps to guide future explorations in this field. Moreover, the results provide actionable insights for policymakers and financial service providers, highlighting the potential of choice architecture to influence consumers’ sustainable investment decision-making.