Balanced Scorecard Framework Research Articles

Performance Assessment of Selected Public Sector Banks in India: A Balanced Scorecard Analysis

This study examines the performance of selected Indian public sector banks — State Bank of India (SBI), Bank of Baroda (BOB), Canara Bank, Union Bank of India, and United Commercial Bank (UCO Bank) — using the Balanced Scorecard (BSC) framework. The BSC assesses banks across four perspectives: Financial, Customer, Internal Business Process, and Learning & Growth. Each perspective provides insights into a bank’s strategic strengths and areas for improvement. Results indicate that financial stability is well-maintained, though variations in customer engagement and internal processes suggest opportunities for operational enhancement

Beyond financials: Examining the impact of customer focus, internal processes, and learning & growth on the sustainable performance of commercial banks—Moderating role of management commitment

AbstractThis study examines the key factors influencing sustainable performance in commercial banks, focusing on the impact of non‐financial metrics—customer focus, internal processes, and learning and growth—within the Balanced Scorecard framework on the performance of commercial banks in Ethiopia. Additionally, it examines the moderating role of management commitment in this relationship, grounded in organizational learning theory, upper echelons theory, and the balanced scorecard model. The study adopts an explanatory research design, utilizing covariance‐based structural equation modeling and interaction‐term analysis. A multi‐stage sampling technique, followed by systematic random sampling, was employed, with Soper's formula used to determine a sample size of 480 from a total population of 4990. Mahalanobis distance was applied to identify and remove biased responses. The findings reveal that non‐financial metrics—customer focus, internal processes, and learning and growth—positively affect commercial banks' sustainable performance, and management commitment strengthens this effect. Furthermore, the results empirically validate the proposed hypotheses, emphasizing the value of incorporating non‐financial metrics into performance measurement and highlighting the essential role of management commitment in ensuring their success. This research fills a gap in the literature on sustainable performance measurement within the Ethiopian banking sector and provides actionable insights for managers and policymakers.

Operationalization of ESG-Integrated Strategy Through the Balanced Scorecard in FMCG Companies

The increasing focus on sustainability and climate change mitigation necessitates that corporate strategies not only build competitive advantage but also contribute to the creation of sustainable operations. The purpose of the article is to present, based on the analyses of the development of the strategic targets of leading Fast-Moving Consumer Goods (FMCG) companies, a method for operationalizing an ESG-adapted corporate strategy within FMCG companies using the Balanced Scorecard (BSC). ESG, encompassing environmental, social, and governance factors, requires a shift in both strategic management theory and practice. The author explores how ESG metrics can be integrated into the traditional BSC framework alongside financial, customer, and business processes and learning and growth perspectives to align with the growing importance of sustainability. The study identifies specific measures that contribute to a successful transition toward sustainable business practices. The findings demonstrate that the BSC, when adapted to incorporate ESG considerations, is an effective tool for strategy implementation and operational management in FMCG companies. While the proposed framework focuses on the FMCG sector, it has potential applications across other industries. The article makes important theoretical contributions, though it would benefit from further empirical research, sector-specific comparisons, and a more detailed examination of external ESG factors that impact corporate strategy.

BALANCED SCORECARD DESIGN AS A MODEL FOR MEASUREMENT OF PUSKESMAS PERFORMANCE IN EAST LOMBOK DISTRICT

The objective of this study is to develop a performance measuring model based on the balanced scorecard framework at the UPT Puskesmas Suela in East Lombok Regency, using the Analytic Hierarchy Process (AHP) technique. This research employed qualitative approaches. Data were gathered with a paired comparison questionnaire employing the Analytic Hierarchy Process (AHP) scale. The performance evaluation of community health centers is conducted using four reference standards, including the financial perspective, community perspective, internal business process perspective, and development and learning perspective. Utilizing this technique for data processing is beneficial in making judgments based on many factors. The research findings indicate that the primary criterion of utmost importance for community health centers is finance, with a weight of 0.465450. The subsequent prioritization criterion is society, assigned a weight of 0.214555. Additionally, both the internal business process criteria and development and learning criteria hold equal significance, each with a weight of 0.112321. Related indicates that Puskesmas as a public sector agency focuses on improving performance on financial perspectives.

A Proposed Methodology For Bridging Policy And Practice To Apply Indonesian SOE Regulations In The Balanced Scorecard Model

This research aims to develop a practical methodology to bridge policy and operational practice at PT Jakarta Industrial Estate Pulogadung (JIEP) through the implementation of a modified Balanced Scorecard (BSC) framework that aligns with Indonesian State-Owned Enterprises (SOEs) regulations. The study addresses the challenge of aligning shareholder directives with daily operations, which often struggle to translate corporate KPIs into operational KPIs. The research finds that while SOEs' administrative culture ensures regulatory compliance, there remains a need for a more structured performance management approach. By integrating goal-setting, expectancy, and control theories into the modified BSC framework, the study offers an approach that aligns regulations, corporate targets, and operational goals. The methodology used is a descriptive case study involving qualitative and quantitative data collection through internal document analysis, workshop discussions, and in-depth interviews. The data were analyzed to develop and implement a strategy map and KPIs relevant to the organization's strategic objectives. The findings show that the proposed framework effectively bridges the gap between policy and practice, ensuring that SOE regulations are not only adhered to but strategically leveraged to enhance organizational performance. By adopting this framework, JIEP and other SOEs can align unit goals with corporate and governmental strategic objectives, creating a more effective and sustainable performance management system. This research makes a significant contribution to the development of performance management systems that can be implemented in other SOEs, offering substantial improvements over existing practices.

Applying fuzzy logic to balanced scorecard for the performance evaluation of government e-services

Purpose The purpose of this study is to assess the performance of United Arab Emirates (UAE) Government e-services by using the fuzzy technique for order preference by similarity to ideal solution (TOPSIS) methodology, integrating insights from the balanced scorecard (BSC) framework across financial, customer, internal business and learning and growth perspectives. Design/methodology/approach Using the fuzzy TOPSIS method, this paper evaluate three e-services in the UAE against 12 criteria representing the balanced scorecard perspectives. Expert evaluation and sensitivity analysis are used to identify the most sustainable e-service alternative. Findings The study findings emphasize the importance of prioritizing customer-centric metrics, improving service reliability and efficiency, and investing in employee training to enhance e-government service performance in the UAE. Sensitivity analysis reinforces the robustness of our results and identifies key criteria influencing decision-making. Research limitations/implications The data was collected only from experts in selected UAE Government departments. This may affect the generalization of the findings. Also, only three e-services were evaluated. Future studies could include various e-services not covered in this study and use different multi-criteria decision-making methods. Practical implications Prioritizing customer satisfaction: Priority should be given to customer satisfaction as it is a critical factor in evaluating e-services because of its importance. It also highlights the importance of considering user feedback and ensuring that e-services have a high level of friendliness and responsiveness to their needs. It follows that minimizing errors and ensuring quick and efficient transactions are crucial. Emphasizing reliability and transaction efficiency: Reliable services and transaction efficiency are also essential criteria for evaluating e-government services. This suggests that e-government services should be designed to minimize errors and ensure that transactions are completed quickly and efficiently. Managing IT costs: To deliver e-government services affordably, effective IT cost management is crucial. This emphasizes how crucial it is to effectively manage IT costs to guarantee the efficient delivery of e-government services. Social implications From a customer perspective, adopting BSC can create a favorable customer attitude, encourage long-term customer support, and increase customer satisfaction and loyalty. These factors have significant social implications for UAE and expatriate individuals who are using such e-government services. Originality/value This study contributes to the literature by showcasing the applicability of the fuzzy TOPSIS methodology in evaluating UAE e-government service performance. By examining multiple perspectives of the BSC, this paper provide valuable insights into enhancing the efficiency and effectiveness of e-services in the UAE Government sector.

Evaluation of Corporate Sustainability Performance through the Integration of ESG and Balanced Scorecard in Manufacturing Companies in Surabaya

This study evaluates the corporate sustainability performance of manufacturing companies in Indonesia by integrating Environmental, Social, and Governance (ESG) criteria with the Balanced Scorecard (BSC). Using a quantitative analysis approach, data were collected from 200 manufacturing companies through a structured questionnaire employing a Likert scale ranging from 1 to 5. Structural Equation Modeling with Partial Least Squares (SEM-PLS 3) was utilized for data analysis. The findings indicate that all relationships between ESG criteria and BSC perspectives are positive and significant, suggesting that incorporating ESG factors into the BSC framework can effectively enhance corporate sustainability performance. This research contributes to the understanding of how ESG integration within traditional performance measurement tools can drive sustainable business practices in the manufacturing sector.

Integration of the balanced scorecard and FAO SAFA for assessing the sustainability of horticultural production in Jawa Barat

Abstract The agricultural sector is a vital component of Indonesia’s economy. However, agricultural production in Jawa Barat, particularly in horticulture, is facing various sustainability challenges. It is crucial to adopt a sustainable approach to agricultural production. This study aims to develop the Balanced Scorecard (BSC) framework to enhance the sustainability of horticultural production in Jawa Barat, using the FAO Sustainability Assessment of Food and Agriculture (SAFA) Framework. A focus group discussion (FGD) was conducted with 68 horticultural farmers representing different regions and horticultural commodities in Jawa Barat. During the FGD, participants rated their familiarity with SAFA Framework indicators and assessed their importance. Frequency analysis was performed on the collected data to determine familiarity and importance levels and correlation analysis using the R method. This research reveals that indicators related to community investment, biodiversity, and renewable energy received lower recognition, suggesting a need for increased emphasis in these areas. The correlation analysis revealed a positive link between Finance and Customer dimensions, highlighting the importance of financial management for customer satisfaction. Addressing these findings will help enhance sustainability and bridge gaps in horticultural practices in Jawa Barat. The findings will support sustainable agricultural practices, enhance decision-making, and promote the long-term viability of the horticultural sector

Performance Analysis and Optimization Proposal Using Balanced Scorecard Framework for IT Outsourcing Company, PT IT Expert System

IT outsourcing companies enable businesses to delegate their IT functions, focusing on core activities, cost efficiency, and access to advanced expertise and technology. The success of these companies hinges on employee performance, influenced by factors like psychological well-being, work environment, and organizational culture. In Indonesia, the IT outsourcing industry is rapidly transforming due to increasing demand for digital solutions and technology experts. Companies strive to provide faster, more efficient services while being flexible and adaptable. The IT services market revenue in Indonesia is expected to grow from $4.89 billion in 2023 to $9.07 billion in 2028, driven by digital transformation, supportive government policies, and increased IT infrastructure investments. PT IT Expert System (PT IES), established in 2010, provides IT services like software development and IT outsourcing. Despite sector growth, PT IES’s financial performance has declined, with monthly revenue dropping from Rp. 220 million to Rp. 140 million, affecting liquidity and leading to debt for paying salaries. This financial strain is partly due to 46% of their IT professionals being idle and a lack of software development projects. The research aims to identify the main causes of PT IES’s business problems, determine an appropriate performance management system framework, and establish suitable Key Performance Indicators (KPIs). The root cause identified is the absence of a performance management system, leading to an ineffective appraisal system and poor decision-making. The Balanced Scorecard framework is recommended for PT IES, translating strategic objectives into measurable processes across four perspectives. This framework streamlines performance evaluation and forecasting. The Balanced Scorecard framework proposal includes 4 perspectives, 9 strategic themes, and 18 strategies with key objectives. These strategies are cascaded into 92 business strategies and objectives with 92 KPIs.

Integration of balanced scorecard and analytical hierarchy process to measure the performance of supporting unit in aircraft maintenance service companies

Dynamic and challenging business environment in the aircraft maintenance services industry require company to survive and ensure business continuity. To realize effective performance, performance measurement is needed as a management system for managing and controlling performance. The purpose of this research is to measure the performance of supporting unit at PT. XYZ by using balanced scorecard framework that is integrated with AHP. The steps in this research includes identification strategy objective, identification key performance indicator (KPI), design and measure performance using integrated balanced scorecard and AHP. The method used in this study combines quantitative data with the Analytical Hierarchy Process (AHP) approach. The AHP method is used for KPI weighting. The design of KPI weights for each perspective in balanced scorecard are 42,3 % for the learning and growth, 33,5% for internal business process, 17,3% for financial, and 6,8% for the customer perspective. The results of supporting unit performance show the lowest score in the learning and growth perspective with average performance indicator, while in internal business process, financial and customer perspective have good performance indicator. The result of measuring total performance of four perspective are 74,5% which indicates that the performance of PT.XYZ’s BSC is in the good enough category.

AI development in financial markets: a balanced scorecard analysis of its impact on sustainable development goals (February 2024)

PurposeThe primary purpose is to empower financial institutions in AI integration decisions. By combining QSFS and the Golden Cut technique, the study establishes a robust foundation for assessing AI progress effects, aligning implementation with performance goals, and promoting technical innovation. Dimensions explored include AI-related workforce competency, technological adaption, and ethical AI practices, crucial components within the BSC framework for technological innovation.Design/methodology/approachThis study employs a distinctive approach, integrating the Balanced Scorecard (BSC) framework with Quantum Spherical Fuzzy Sets (QSFS) and the Golden Cut approach to explore the dynamic landscape of AI deployment. The integration addresses uncertainties, enhancing impact assessment accuracy amid ambiguity associated with AI outcomes. QSFS and the Golden Cut technique together facilitate precise identification of thresholds and crucial values.FindingsThe research delves into the intricate relationship between enduring financial stability and AI progress, recognizing technology's crucial influence on financial decision-making. Findings underscore technology's significant impact on financial institutions' AI integration decisions. This novel approach provides a strong quantitative basis, offering insights into workforce competency, technological adaption, and ethical AI practices.Research limitations/implicationsDespite valuable contributions, the study acknowledges limitations, such as potential biases and generalizability concerns, emphasizing the need for cautious interpretation and suggesting future research directions. Recognizing the research's boundaries and complexities in studying AI deployment in financial institutions underscores the need for ongoing exploration.Originality/valueThe research's originality lies in presenting an innovative methodology, integrating BSC, QSFS, and the Golden Cut, providing a unique perspective for decision-making. Contributions extend beyond academia, offering practical insights to enhance AI strategic implementation in the financial industry. This novel approach enriches the technology and finance discourse, fostering theoretical and practical advancements.

Exploring the performance effects of digitalisation: a measurement tool based on the sustainability balanced scorecard framework

ABSTRACT Although recent research has confirmed the positive economic effects of digitalisation on firm performance, fewer investigations have addressed the potential non-economic effects of digitalisation on organisational performance, including sustainability performance. To address the inconclusive relationship between digitalisation and organisational sustainable performance the current research considers the mixed effects of digitalisation and proposes a practical tool for assessing those effects. An exploratory, qualitative study reveals several mixed effects of digitalisation across six performance perspectives: financial, customer, internal business processes, learning and growth, social, and environmental. The practical proposed ‘digimpact’ tool can evaluate these various impacts of digitalisation on sustainable organisational performance and thereby help managers design effective digital transformation strategies. The digimpact measurement tool also can be tested, confirmed, and revised in ongoing research to expand and improve its effectiveness.

The Assessment Model of Robotic Process Automation (RPA) Project Using Benefit Study and Balanced Scorecard (BSC) Approach

Assessing Robotic Process Automation (RPA) projects is challenging, especially for small and medium-sized enterprises (SMEs) with limited resources. The most common approach, cost-benefit analysis, measures the financial success of a project, but it does not capture all RPA benefits, which can lead to erroneous decisions about starting, continuing, delaying, or stopping an RPA project. This research presents a novel RPA project assessment model that combines a benefits approach with the balanced scorecard (BSC) framework. The model identifies RPA benefits from the scientific literature and classifies them into four BSC indicators: financial, business process improvement, customer satisfaction, and learning and development. SMEs can easily use the model by comparing expected and actual benefits to make quick and holistic decisions. The model's simplicity, ease of use, and ability to reveal both monetary and non-monetary RPA benefits make it a valuable tool for SMEs.

The Impact of Organizational Culture on the Innovation and Performance of SMEs: A Comparative Study between Germany and Thailand

Innovation is recognized as one of the key factors for economic growth and building a competitive advantage for small and medium-sized enterprises (SMEs) in today’s world. The purpose of this research is to investigate how innovation is related to organizational culture and performance of SMEs located in Germany and Thailand. Based on an extensive literature review, the authors propose a comprehensive research model that integrates the competing values framework, organizational innovation and the balanced scorecard framework. Data from 213 respondents across both countries were collected and analyzed utilizing structural equation modelling. Results show that despite their contrasting national cultures, adhocracy culture is a key driver of organizational innovation in both countries, leading to enhanced overall organizational performance, particularly in financial and customer dimensions. This study enriches organizational behaviour research with unique cross-cultural perspectives and equips leaders of SMEs with practical strategies for cultivating an adhocracy culture across diverse cultural landscapes.

The Balanced Scorecard Approach to measuring Cooperative Performance: Implications for Multipurpose Cooperatives in the Philippines

The Balanced Scorecard (BSC) has been studied a lot as a tool for measuring performance in corporate organizations around the world, but it hasn't been studied much in cooperatives. The goal of this research was to ascertain how multipurpose cooperatives perform using the BSC. A total of eighteen cooperatives were purposively chosen as samples for this research, where members, employees, and managers served as the respondents. The study utilized a descriptive research design whereby the researcher collected and analyzed financial statements for three years, made use of surveys to elicit responses from respondents, and conducted document analysis to further enhance the result. Results showed that the cooperatives’ financial performance obtained a "fair performance" rating using the Cooperative Development Authority's (CDA) performance standards. Members/customers received very satisfactory performance, while internal business processes and learning and growth received excellent results. This investigation revealed that despite financial performance issues, cooperatives met member expectations, provided outstanding business processes, and provided staff learning and development, contradicting Kaplan and Norton's assertion that optimal performance in all three areas leads to financial success. Weak areas were also identified along with the four BSC perspectives that need intervention, and strategies were devised to enhance and improve performance utilizing the BSC framework. It is recommended that cooperatives adopt strategies in terms of improving their performance, particularly in the identified weak areas, and meeting their objectives and goals as set by CDA. Future researchers may consider discovering cooperatives' performance in other social aspects.

Strategic Direction and Organizational Performance in Government-Sponsored Youth Empowerment Organizations in Kenya

Purpose: Government-sponsored Youth Empowerment organisations (GSYEOs) are designed to skill, prepare, and empower the youths toward poverty eradication, formal employment, and self-reliance. However, poverty and unemployment among the youths in Kenya seem to be on an onward trajectory, and yet scarce research has been conducted on the influence of strategic direction on the performance of GSYEOs. This study examines the influence of strategic direction and the performance of GSYEOs in Kenya, which is anchored on strategic leadership theory and measured using the Balance Score Card framework. Design/Methodology/Approach: A descriptive research design was utilized and a random sample of five GSYEOs with a total population of 1089 employees was adopted, and a sample of 109 was derived. Correlation analysis results show that strategic leadership and organisational performance were positively and significantly correlated (r=0.661; P-value <0.05). Results from simple linear regression showed that 43.6% was a good fit for the organisational performance (R squared =0.436, R= 0.661). Implications/Originality/Value: The study recommends that GSYEO’s leadership encourage strategic direction implementation through adequate budget allocation.

Human Resource Development and Organisational Performance in Government-Sponsored Youth Empowerment Organizations in Kenya

Purpose: Government-sponsored Youth Empowerment organisations (GSYEOs) are designed to skill, prepare, and empower the youths toward poverty eradication, formal employment, and self-reliance. However, poverty and unemployment among the youths in Kenya seem to be on an onward trajectory. Yet, scarce research has been conducted on the influence of strategic direction on the performance of GSYEOs. This study examines the influence of strategic direction and the performance of GSYEOs in Kenya, which is anchored on strategic leadership theory and measured using the Balance Score Card framework. Design/Methodology/Approach: A descriptive research design was utilised, a random sample of five GSYEOs with a total population of 1089 employees was adopted, and a sample of 109 was derived. Simple analysis results show that the relationship between organisational performance and Human Resource Development is statistically significant as (p<0.05), 65.0% of the variation in the organisational performance can be explained by the regression model (R2=0.65, ΔR2=0.644, F(1,64) =118.748, P<0.05). Results showed that that 65% was a good fit for the organisational performance. Implications/Originality/Value: The study recommends that the Government of Kenya allocate and prioritise funding for capacity building in Government-Sponsored Youth Empowerment Organizations.

Performance Measurement Integration And Performance Of Manufacturing Firms in Rwanda

Rwanda's manufacturing industry is essential to the country's economic growth and employment generation. Achieving sustainable development and global competitiveness necessitates the integration of performance assessment effectively. This entails measuring and optimizing organizational performance, especially in supply chains, using a variety of measures. Global market trends and resource limitations are two ongoing challenges that emphasize the necessity for reliable measuring methods. In order to give policymakers and business practitioners useful information, this study aims to assess the effect of performance measurement integration on manufacturing company performance in Rwanda, concentrating on important industries and geographical areas. Expectancy Theory and the Balanced Scorecard Framework (BSC), two important theoretical frameworks related to performance measurement integration in manufacturing businesses, are examined in the literature study. According to expectation theory, people are driven by their conviction that performance, effort, and results are all related. The BSC provides a strategy-based framework for decision-making at various organizational levels. It was created by Kaplan and Norton. The significance of integrating performance assessment in order to increase productivity, quality, customer happiness, and decision-making for small and medium-sized enterprises (SMEs) is underscored by empirical research. Performance in manufacturing is evaluated and optimized via the use of a variety of instruments and methods, including the BSC and KPIs. 
 The study methodology utilized a quantitative analytic strategy with an explanatory approach to comprehend the relationship between manufacturing company performance and supply chain integration. The research philosophy was shaped by positivism, which prioritized quantitative approaches. Semi-structured questionnaires were used to gather data from 213 manufacturing companies; 94% of the respondents answered the questions. The integration of performance measurement has been found to have a favorable influence on the performance of manufacturing organizations through effective communication, information exchange, and strategic supplier relationships. These findings were supported by descriptive statistics. The findings showed a positive relationship between measurement integration and company performance, with integration accounting for 49.9% of the variance in performance. The results showed that efficient decision-making and information exchange among supply chain participants were influenced. Notably, framework agreements with key suppliers were frequently used in emergency situations. The functions of logistics companies, funders, governments, media, and security personnel in relief efforts were emphasized using qualitative analysis. Issues with inadequate coordination and information exchange were noted. Enhancing IT infrastructure, adopting emerging technologies, collaborating with many stakeholders, and establishing legal frameworks for production readiness are among the recommendations. The study emphasizes how crucial technology, collaboration, and integration are to maximizing the performance of industrial firms and disaster relief in Rwanda.

Role of Microfinance Institutions in Ethiopian Economy: A Review

This work reviews the role of microfinance institutions in the Ethiopian economy, which was done by using a balanced scorecard (BSC) performance review approach that integrates both financial and nonfinancial metrics. The BSC framework of the review was developed using a total of performance indicators that were equally categorized under BSC perspectives (financial, customer, internal business processes, and learning and growth). The developed framework was applied to MFIs operating in Ethiopia, which have head offices in all regional capitals of the country and report to the Association of Ethiopian Microfinance Institutions (AEMFI) starting in 2010–2012 consecutively. The work of the review shows that based on their financial role, on average, the institutions reviewed are sustainable with high relative productivity and low profitability. The average non-financial performance is also high, indicating that the reviewed institutions are highly performing in both non-financial and financial measures. Beside the role performance, the work of this review confirmed the relationship assumption of BSC perspectives and it shows a positive correlation among them. The review concludes that comprehensive performance is observed when it is measured in a collective way. So, Ethiopian MFIs suggested paying attention to the use of BSC as a performance measurement tool and as a hub for specified role indicators that need enhancement.

Neuro quantum-inspired decision-making for investor perception in green and conventional bond investments

The purpose of this study is to make a comprehensive analysis of investor perceptions in the context of green and conventional bond investments. For this purpose, a new model is presented by considering two steps. First, a criteria set is generated by considering balanced scorecard perspectives that are finance, customer, organizational effectiveness and learning and growth. After that, the neuro Quantum fuzzy M-SWARA method is considered to weight these criteria. Secondly, seven critical determinants for bond investments are identified that are coupon rates, volume, maturity, riskiness, liquidity, volatility, and tax considerations. Neuro Quantum fuzzy TOPSIS approach is employed to rank these factors. The main contribution of the study is that by combining the balanced scorecard framework and quantum-inspired decision-making techniques, this paper offers a novel and sophisticated decision-making model to understanding investor behavior. Similarly, in the proposed model, a new methodology is generated by the name of M-SWARA. In this framework, some enhancements are adopted to the SWARA technique. The weighting results indicate that meeting customer expectations is the most critical factor that affects the investor perception to make investments to the bonds. Moreover, according to the ranking results, it is concluded that coupon rates are the most important item for both conventional and green bond investors. On the other hand, with respect to the conventional bond investor, tax is the second most essential factor. However, regarding the green bond investors, volatility plays a critical role. AcknowledgmentThis research has been/was/is funded by the Science Committee of the Ministry of Science and Higher Education of the Republic of Kazakhstan (№ AP 19679105 “Transformation of ESG financial instruments in the context of the development of the green economy of the Republic of Kazakhstan”).