Get Real! Individuals Prefer More Sustainable Investments

Abstract

Do people put their pension savings on the table to promote sustainability? We conducted a field experiment with a pension fund that had focused very little on sustainable investments. The pension fund then gave its members a real vote on whether to increase sustainable investments. We find that 67.9% of participants voted for more sustainable investments with their pension savings at stake. Even among participants who expected lower financial returns if sustainable investments were increased, a majority voted for more sustainable investments. These results can have consequences for asset pricing and the fulfillment of the United Nations Sustainable Development Goals.

Keywords: field experiment, social preferences, socially responsible investments, sustainable finance, experimental finance

JEL Classification: G02, G20, G23, G28