Sustainable Investment Portfolio of Institutional Investors: Systematic Literature Review

Abstract

Sustainable investment has moved from a niche ethical practice to a systemic feature of global capital markets, yet the literature remains fragmented across investor types and divided between portfolio-formation mechanisms and portfolio-evaluation criteria. This article addresses that gap by synthesizing the theoretical, empirical, and regulatory literature into a single integrated framework covering all major classes of institutional investor: banks, pension funds, insurance companies, sovereign wealth funds (SWFs), and mutual and hedge funds. Using a PRISMA-style systematic literature review of 38 core sources drawn from Scopus, Web of Science, ScienceDirect, NBER, IMF, BIS, SSRN, and UN PRI repositories, the study maps how environmental, social, and governance (ESG) considerations are operationalized at the formation stage (screening, integration, engagement, thematic allocation, green-bond allocation, ESG risk overlays) and how outcomes are assessed at the evaluation stage (risk-adjusted return metrics, non-financial KPIs, and blended impact metrics). The article concludes with five policy recommendations and five-point research agenda and situates emerging markets including Uzbekistan within the global landscape.