Opportunities to Increase Financial Well-Being by Investing in Environmental, Social and Governance with Respect to Improving Financial Literacy under COVID-19: The Case of Latvia
2. Literature Review
2.1. Sustainability of Investments and ESG Themes and Issues
2.2. Financial Literacy Improvement as Financial Well-Being Factor
2.3. Investors’ Attitudes toward ESG Investing and Financial Well-Being under COVID-19
3.1. Data and Research Methodology
3.2. Research Results and Discussion
- whether the improvement of the level of financial literacy since the beginning of 2020 depends on the level of education, income level and savings/investment experience of the Latvian population;
- whether the increase in the desire to create savings and to invest since the beginning of 2020 depends on the level of education, income level and savings/investment experience of the Latvian population;
- whether the willingness to invest in the field of ESG depends on the level of education, income level and savings/investment experience of the Latvian population.
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
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|3 ESG Pillars||10 ESG Themes||35 ESG Issues|
|Environment||Climate Change||Carbon Emissions|
Product Carbon Footprint
|Financing Environmental Impact|
Climate Change Vulnerability
|Natural Capital||Water Stress|
Biodiversity and Land Use
|Raw Material Sourcing|
|Pollution & Waste||Toxic Emissions & Waste|
Packaging Material and Waste
|Environmental Opportunities||Opportunities in Clean Tech|
Opportunities in Green Building
|Opportunities in Renewable Energy|
|Social||Human Capital||Labour Management|
Health & Safety
|Human Capital Development |
Supply Chain Labour Standards
|Product Liability||Product Safety & Quality|
Financial Product Safety
|Privacy & Data Security|
Health and Demographic Risk
|Stakeholder Opposition||Controversial Sourcing|
|Social Opportunities||Access to Communications|
Access to Finance
|Access to Health Care|
Opportunities in Nutrition & Health
|Governance||Corportate Governance||Ownership & Control|
|Corporate Behaviour||Business Ethics|
|Organisations and Authors||Definition|
|OECD (2015)||The combination of awareness, knowledge, skills, attitudes, and behaviours is needed to make sound financial decisions and ultimately achieve individual financial well-being.|
|OECD (2020)||Includes access to, and use of, formal financial products and services, including digital ones; budgeting and managing finances in the short term; saving and investment; credit management; planning and saving for retirement and pensions; and risk management and insurance.|
Council on Financial Literacy (PACFL) (2008)
|The ability to use knowledge and skills to effectively manage financial resources in times of financial well-being.|
|National American Council for Economic Education (2005)||The development of skills and knowledge acquisitions concerning financial matters to make effective decisions and implement activities that meet an individual’s personal, family, and global community needs.|
|A. Lusardi and O. S. Mitchell (2014)||The ability of people to process economic information and make informed decisions about financial planning, wealth accumulation, debt, and pensions. the ability to apply knowledge to improve the financial position.|
|A. Lusardi and O. S. Mitchell (2006)||The ability and tools to plan and the ability to make retirement savings plans. Those with higher financial skills are more likely to save and invest in complex assets such as equities.|
|Lusardi and Tufano (2008)||The ability to make simple decisions regarding liability agreements, especially in terms of basic knowledge about interest rates within the context of everyday financial choices.|
|W. Sucuahi (2013)||Record-keeping, budgeting, personal finance, and savings were viewed to be more important to lower-income individuals.|
|Gale and Levine (2010)||The ability to make informed judgments and make effective decisions about the use and management of money and wealth.|
|Bernheim and Garrett (2003)||Not an isolated category but a specialized part of economic literacy related to the ability to provide income, move around the labour market, make payment decisions, and be aware of the possible consequences of one’s decisions on current and future income.|
|National Strategy for Financial Literacy in Latvia 2021–2027 (2021)||The combination of financial awareness, knowledge, skills, attitudes, and behaviours needed to make sound financial decisions and ultimately achieve the well-being of individuals.|
|Monthly net income|
|More than one year||166||47.6%|
|Up to one year||81||23.2%|
|Variable||n (%)||MV||SE||Values Range||Skewness|
|Daily income trend||349 (100%)||3.221||0.058||1–5||−0.202|
|Daily expenses trend||349 (100%)||2.934||0.060||1–5||−0.003|
|Digital skills development and knowledge of financial services||349 (100%)||3.375||0.043||1–5||−0.087|
|Willingness to invest||349 (100%)||3.089||0.064||1–5||−0.233|
|Changes in perceptions of investment principles during COVID-19||349 (100%)||2.461||0.060||1–5||0.444|
|Changes in attitude towards the need to ESG investments during COVID-19||349 (100%)||3.570||0.074||1–5||−0.841|
|Changes in investment habits in favor of sustainable investment in the future during COVID-19||349 (100%)||3.120||0.080||1–5||−0.396|
|Education Level||Financial Literacy||Desire to Invest||Investm. in ESG|
|Sav./Invest. Exper.||Financial Literacy||Desire to Invest||Investm. in ESG|
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Mavlutova, I.; Fomins, A.; Spilbergs, A.; Atstaja, D.; Brizga, J. Opportunities to Increase Financial Well-Being by Investing in Environmental, Social and Governance with Respect to Improving Financial Literacy under COVID-19: The Case of Latvia. Sustainability 2022, 14, 339. https://doi.org/10.3390/su14010339
Mavlutova I, Fomins A, Spilbergs A, Atstaja D, Brizga J. Opportunities to Increase Financial Well-Being by Investing in Environmental, Social and Governance with Respect to Improving Financial Literacy under COVID-19: The Case of Latvia. Sustainability. 2022; 14(1):339. https://doi.org/10.3390/su14010339Chicago/Turabian Style
Mavlutova, Inese, Andris Fomins, Aivars Spilbergs, Dzintra Atstaja, and Janis Brizga. 2022. "Opportunities to Increase Financial Well-Being by Investing in Environmental, Social and Governance with Respect to Improving Financial Literacy under COVID-19: The Case of Latvia" Sustainability 14, no. 1: 339. https://doi.org/10.3390/su14010339