There is clear evidence that a significant portion of investors want to invest sustainably, as reflected in the growth of funds marketed as having sustainability or ESG characteristics. Concerns about greenwashing have led to disclosure requirements and fund labelling regimes in several countries for such funds. At the same time, some asset owners such as pension funds reference the long-term interests or preferences of beneficiaries as supporting sustainability goals for the fund.
But there is a need for more research into what end investors (retail clients and pension scheme members) really mean by, want and expect from, and are prepared to pay for sustainability in their investments. Do they expect higher returns and / or reduced risk? Do they want to have impact on real world sustainability outcomes or merely the warm glow of “doing good”? Do they simply want to align with their values and preferences for the types of companies they profit from holding? And what are they prepared to pay for any of this?
This project will review existing evidence and obtain new data on these key questions to inform the practice of responsible investing.
This Project is Funded by the Responsible Investing Initiative.
For further information contact Tom Gosling t.gosling1@lse.ac.uk
