How Can Responsible Investments and ESG Be Promoted in Israel?

This post presents key insights from the authors 2024 research into the perceptions of senior figures in Israel’s capital market regarding ESG (Environmental, Social, and Governance) and corporate responsibility. Based on in-depth interviews with 23 executives, regulators, investors, and opinion leaders, the study reveals a market still lagging behind global leaders, with fragmented awareness, inconsistent implementation, and minimal regulation.

The findings highlight skepticism about ESG’s financial relevance, a lack of reliable local ESG metrics, cultural barriers, and insufficient media engagement – conditions that fuel greenwashing and limit investor demand. Unlike Europe’s regulator-driven approach or the United States’ politically polarized "post-ESG" climate, Israel’s ESG development remains slow and largely uncoordinated.

The research outlines a comprehensive roadmap focusing on education and research, the creation of a transparent and credible Israeli ESG index, unified and mandatory ESG disclosure aligned with global standards, and a broad cultural shift to raise public awareness and foster cross-sector cooperation. Closing Israel’s ESG gap is both a market necessity and a societal opportunity, with the potential to boost competitiveness, attract responsible investment, and strengthen the long-term resilience of Israel’s economy and society.

To read the full article, visit our Hebrew main blog.