Fostering sustainable finance investments: Understanding investor motivations for impact funds from the perspective of the push-pull-mooring framework

Private investors’ investments are essential for achieving sustainability goals within sustainability transformation. Drawing on migration theory, this study applies the push-pull-mooring framework and structural equation modeling to contribute to a better understanding of motivations guiding potential investors toward sustainable financial products that pursue sustainability-related objectives alongside return on investment (impact funds).
Our findings reveal pull (i.e., lifestyle compatibility and alternative attractiveness) and mooring (i.e., consciousness for sustainable consumption) factors as influential drivers of the intention to invest in impact funds. Conversely, push factors (i.e., perceived environmental threats) may not always trigger transformative actions. Therefore, different investment profiles, emerging from intergenerational differences and prior experiences, necessitate tailored strategies for different investor target groups as well as further communication and education on sustainability issues by asset managers to encourage a broader impact fund acceptance.
Our study emphasizes the growing importance of integrating sustainability strategies into asset management, driven by evolving regulatory frameworks and shifting investor preferences. Future research in sustainable finance should refine the push-pull-mooring framework, address endogeneity issues through longitudinal behavioral data, and incorporate additional control variables for a more comprehensive understanding. Overall, this study provides a foundation for future research and managerial strategies to foster sustainable finance investing.