Get Real! Individuals Prefer More Sustainable Investments

Explaining the discrepancy between intentions and actions: The case of hypothetical gap in contingent valuation

Rob Bauer, Tobias Ruof, Paul Smeets and Stijn Van Nieuwerburgh

The Review of Financial Studies, 2021, vol. 34, issue 8, 3976-4043

Abstract: The United Nations’ Sustainable Development Goals (SDGs) have created societal and political pressure for pension funds to address sustainable investing. We run two field surveys (n = 1,669, n = 3,186) with a pension fund that grants its members a real vote on its sustainable-investment policy. Two-thirds of participants are willing to expand the fund’s engagement with companies based on selected SDGs, even when they expect engagement to hurt financial performance. Support remains strong after the fund implements the choice. A key reason is participants’ strong social preferences.

JEL-codes: G02 G11 G20 G23 G28 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (70)

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