Pension Funds and Sustainable Investment: Challenges and Opportunities

The book explores the evolution of ESG considerations in institutional investing, including the diverse reasons why investors pay attention to these criteria and the potential impact of divestment on company behavior. It also suggests that policymakers should consider fund consolidation and align service-provider incentives with sustainability incentives to generate better-informed policies and provide beneficiaries with information relevant to their savings choices.

Format: Hardback
Length: 272 pages
Publication date: 04 May 2023
Publisher: Oxford University Press

Environmental, social, and governance (ESG) factors have gained increasing importance in institutional investing, particularly among pension funds, over the past five decades. This Pension Research Council volume explores these shifts and their implications, leading up to the present day. The book acknowledges that investors have diverse motivations for considering ESG criteria when making investment decisions, ranging from religious values to risk mitigation. However, studies indicate that divestment alone rarely leads to significant changes in companies' behaviors.

The book presents a range of perspectives from various countries on the role of ESG criteria in pension fund investments. It also examines the potential for fund consolidation in private sector retirement systems and explores ways to align service-provider incentives with sustainability incentives. For instance, increasing transparency in these markets can help generate better-informed policies, while providing beneficiaries with information relevant to their savings choices.

Overall, the book provides valuable insights into the evolving landscape of ESG considerations in institutional investing and offers recommendations for policymakers and investors to promote sustainable and responsible investment practices.

Weight: 520g
Dimension: 240 x 155 x 20 (mm)
ISBN-13: 9780192889195