Impact Of Esg Disclosure On Investing Decisions: A Case Of Cbz Bank Zimbabwe

Abstract

This study investigates the influence of Environmental, Social, and Governance (ESG) disclosure on investment decisions made by CBZ bank in Zimbabwe. Driven by the rising emphasis on ESG integration, the research assesses its impact on financing and explores factors influencing investments, methods for enhancing sustainable investments, and motivations behind corporate ESG disclosure. Utilizing the theory of planned behaviour as a theoretical framework, the study employs a mixed-methods approach, combining questionnaires and interviews. The findings, analysed and presented using SPSS V20 and Microsoft Excel, reveal that while banks consider ESG disclosures during investment decisions, their influence alone is minimal. Additionally, the absence of mandatory ESG disclosure policies and integration frameworks within the Zimbabwean financial sector hinders wider adoption. The study concludes that while ESG disclosure plays a role in shaping investment decisions, its acceptance in Zimbabwe remains limited. It recommends further research to explore how financial institutions can improve environmental disclosures and evaluate the potential for adjusting regulations to incorporate ESG considerations into the banking sector.