Analysis of Green Investment Efficiency. A Model for Future Economic Sustainability Development

Abstract

In the light of increasing environmental and socially awareness of private enterprises and responsibility frameworks developed by governmental institutions and intergovernmental organizations with initiatives such as the Corporate Social Responsibility Directive (CSRD) by European Union and Sustainable Development Goals (SDGs) by United Nations, an increasing emphasis is being put on the equilibrium between social responsibility and economic profitability. One of the most, if not the most strongly influenced department within a company’s composition is the Research and Development (R&D) department. In order to ensure a profitable threshold between profitability and responsibility, an optimal planing approach has to be carried on and acted upon, so that eventhou the results and products persevere in having lesser environmental impact, the company’s continuity is preserved. To achieve this, the author analyses the impact of “greener” investments with regard to profitability changes. The outcomes and effects of specific R&Ds to secure a favourable result are then discussed and interpreted. Afterwards, an analysis of the investment strategies and policies based on information revelations is being guided. As well, in this paper, the encompassment of a profitable investment strategy with the main focus on future endeavours and advantages is being regarded.

Keywords

• sustainable profitability
• environmental responsibility
• green investments
• management strategy