5. Values and Norms in the Sustainable Finance Debate: Similarities, Differences, and Perspectives for Sustainable Investment

The chapter delves into the core consideration of sustainability in finance, driven largely by European regulations. It discusses the shift from self-determined sustainability to regulator-driven standards, and the strategic opportunities for investors to position themselves as responsible players. The text also explores the distinction between values-based and norms-based investment approaches, highlighting the importance of aligning investments with both regulatory requirements and individual or organizational values. It uses the example of churches as ethical investors to illustrate the practical implications of this distinction. The chapter further discusses the importance of considering values and norms in investment decisions, noting that values-based investments can also be norms-compliant, and vice versa. The text concludes with a call for greater transparency and methodological considerations in integrating values into sustainable finance.