Institutional investors and the adoption of socially responsible investment: an explorative case study of Dutch pension funds

F.A.J. Wagemans*, R.J. Verstappen, C.S.A. van Koppen, H. Tobi, A.P.J. Mol

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Although socially responsible investment (SRI) is on the rise, little is known about the adoption process of SRI practices by institutional investors. In this study, we formulate expectations for SRI adoption based on corporate social responsibility (CSR) stage models. These expectations were then tested using a unique dataset containing information on the SRI practices of 50 Dutch pension funds. We find that CSR stage models can plausibly be applied to SRI. In line with CSR stage models, target setting and the involvement of stakeholders is most likely accomplished through pension funds that already follow well-developed SRI practices. Additionally, there is a clear order followed in the implementation of SRI instruments. To further delineate the way in which CSR stage models translate into SRI, it is important to account for the particularities of specific asset classes, the role of the investment chain, and the regulatory and societal conditions in different markets.

Original languageEnglish
JournalJournal of Sustainable Finance and Investment
DOIs
Publication statusE-pub ahead of print - 18 Mar 2024

Keywords

  • corporate responsibility
  • institutional investors
  • pension funds
  • Responsible investment
  • SRI

Fingerprint

Dive into the research topics of 'Institutional investors and the adoption of socially responsible investment: an explorative case study of Dutch pension funds'. Together they form a unique fingerprint.

Cite this