Sustainability-Cantered Portfolio Management: A BCG Matrix Approach to Climate-Resilient Investments: A Systematic Literature Review

Abstract

The BCG Matrix, traditionally a business strategy tool, has gained relevance in addressing climate change and sustainability challenges in investment portfolios. This study investigates the integration of the BCG Matrix into sustainability-focused investment strategies, with an emphasis on climate change implications. The research aims to develop a comprehensive model aligning portfolio management practices with long-term sustainability goals by identifying key clusters of sustainable investments and assessing their growth potential and market share within the context of climate-related risks. A systematic literature review was conducted using the Scopus database, following PRISMA guidelines. The final dataset comprised 57 publications from 2010 to 2024, spanning various disciplines. Content analysis and bibliometric techniques were employed to identify trends, key terms, and research clusters. The analysis revealed three distinct clusters: "Investment Portfolios Amid Climate Change and Uncertainty," "Sustainable Portfolios: Market, Stocks, and Risk Management," and "Energy Portfolios: Sustainable Usage and Building Strategies." The research landscape showed a shift from general climate change investment portfolios towards sustainable market approaches and energy-specific strategies. The study's findings led to the development of the Sustainable Investment Portfolio Optimization (SIPO) Framework, which adapts the BCG Matrix to include climate resilience factors. This novel approach provides investors with a tool for strategic resource allocation, balancing short-term returns with long-term sustainability goals. Future research directions include incorporating real-time market data, exploring sector-specific applications, and integrating machine learning techniques for enhanced predictive capabilities. Longitudinal studies tracking the performance of sustainability-focused portfolios are also recommended to assess the long-term efficacy of these strategies in the face of climate change.