Evolution and Prospects of Sustainable Investment in Emerging Economies: A Literature Review

This study examines the evolution and challenges of sustainable investing in emerging markets, focusing on the integration of sustainability, social and governance (ESG) principles. Through a systematic review of the literature in Scopus, following the Preferred Elements for Systematic Review Reporting and Meta-Analysis (PRISMA) method, the most relevant research of the last decade is analyzed. The study highlights the exponential increase in scientific production in the field since 2019, underlining its interdisciplinary, collaborative and international nature, driven by the recognition of sustainability as a strategic axis for competitiveness and sustainable development. It highlights that emerging economies still face significant challenges at both the systemic and firm levels. In this regard, it emphasizes the need to update methodologies for evaluating socially responsible investment (SRI), strengthen and homogenize regulatory frameworks, integrate ecological practices into urban planning and the financial sector, strengthen financial education, and the need for a proactive role for public policy makers and other key actors. In addition, it suggests future research on the role of sustainable financial instruments, AI-mediated ESG innovation, and resilient business models with the aim of offering a comprehensive vision that optimizes the effectiveness of sustainable investments and promotes inclusive and environmentally responsible economic development in developing economies.