Get Real! Individuals Prefer More Sustainable Investments

Abstract

In two survey experiments (n=1,669 and n=3,186), we address the question whether people put their pension savings on the table to promote sustainability. First, pension fund members get a real vote on the fund’s engagement strategy. A majority of members (67.9%) votes for increased and intensified engagement based on the Sustainable Development Goals (SDGs). Then, members can provide feedback on the implementation by the fund. The support for the updated engagement strategy stays strong. Members also back the fund’s decision to additionally screen equity portfolios based on SDGs. Support for sustainable investments is largely driven by social preferences.

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

JEL Classification: G02, G20, G23, G28