Differences in ESG Investing in the EU and the United States: A qualitative investigation into factors and forces that created vastly different ESG markets




DSouza, Seann

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ESG, a framework to consider and evaluate companies and investments, has become something of a major development within the financial industry in the past five years. Two major financial regions of the world that have similar financial innovations and adopt similar practices, the United States and the European Union, have adopted and integrated ESG investing to varying degrees. In fact, the EU ESG market is substantially larger, more regulated, less controversial, and more common than the US ESG market.

The first task of this paper is to examine the sizes and demand for the respective ESG markets of the EU and the US. Secondly, to evaluate the belief and perspectives in climate change that individuals in the EU and the US have. Next, I will discuss the factors of determination that impact climate change belief and further analyze how they could affect integration of ESG within the EU and the US. The last task of the paper is to evaluate the regulatory or legal distinctions that allow for ESG integration to increase among the general public and/or institutions. I will then provide a conclusion that talks about the importance of minimizing factors that could limit ESG investing development within the EU and the U.S.


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