Landscape with windmills, #sustainability

The Responsible Investing Initiative (RII) starts from the premise that corporations are primarily motivated to serve consumer, employee and investor demands and that responsible investment must be considered within this context. The RII researches the extent to which satisfying these demands will support or conflict with sustainable long term value creation and positive outcomes for society and, if not, how these are best aligned. 

Areas of study include:

  • Consumer, client, and beneficiary sustainability preferences and what these imply for corporate and investor action.
  • The impact, costs, and overall effectiveness of sustainability disclosures, taxonomies, and related regulation; how they affect investor and corporate incentives and how such regulations should be most effectively designed.
  • The role and appropriate nature of corporate and investor sustainability commitments (such as “net zero 2050”) given investor and corporate agency.
  • The role of executive compensation in supporting long-term value creation.

The Responsible Investing Initiative is funded with the generous support of The Brown-Gonzalez Charity.

Research Projects

What do end investors mean by sustainability?

This project will review existing evidence and obtain new data on these key questions to inform the practice of responsible investing. 

Passing the vote or passing the buck?

LSE is working with the IFF to design a research project comprising literature review, development of a conceptual framework for analysing pass-through voting, and stakeholder interviews amongst...

Do mandatory climate disclosures help or hinder?

Analysing the effectiveness of emissions disclosures, TCFD disclosures, and transition plans: how they affect company and investor behaviour and whether they contribute to real-world action on climate...