ESG integration in the Baltic investment landscape: progress, challenges, and future directions

Abstract

This study investigates the integration of Environmental, Social, and Governance (ESG) factors by financial investors in the Baltic region, focusing on developments between 2021 and 2024. Using a structured survey and follow-up interviews, we explore investor motivations, challenges, and regulatory impacts. Findings reveal that 88% of respondents now apply ESG criteria, driven largely by regulation, although 12% question its added value. Persistent issues include data quality and standardization. The results inform ESG policy, implementation strategies, and comparative analysis of regional ESG maturity.