Responsible Institutional Investing Around the World

67 Pages Posted: 23 Feb 2020 Last revised: 8 May 2020

See all articles by Rajna Gibson

Rajna Gibson

European Corporate Governance Institute (ECGI); University of Geneva - Geneva Finance Research Institute (GFRI)

Simon Glossner

University of Virginia - Darden School of Business

Philipp Krueger

University of Geneva - Geneva Finance Research Institute (GFRI); Swiss Finance Institute

Pedro Matos

University of Virginia - Darden School of Business; European Corporate Governance Institute (ECGI)

Tom Steffen

Osmosis Investment Management

Date Written: April 27, 2020

Abstract

We explore a novel survey on responsible investing by institutional investors around the world and match it to archival data on their equity portfolio holdings. We document that institutions that publicly commit to responsible investing exhibit better environmental, social, and governance (ESG) portfolio-level scores (“footprints”) but this is not the case for US-domiciled institutions. We observe considerable heterogeneity among responsible investors but when we examine whether specific ESG implementation strategies (e.g., screening, integration, engagement) affect portfolio-level ESG footprints we find limited evidence. Finally, we document that responsible investing does not enhance portfolio returns but acts as a risk mitigation tool.

Keywords: ESG, SRI, socially responsible investing, sustainability, institutional investors

JEL Classification: G15, G23, G30, M14

Suggested Citation

Gibson, Rajna and Glossner, Simon and Krueger, Philipp and Matos, Pedro and Steffen, Tom, Responsible Institutional Investing Around the World (April 27, 2020). Swiss Finance Institute Research Paper No. 20-13, Available at SSRN: https://ssrn.com/abstract=3525530 or http://dx.doi.org/10.2139/ssrn.3525530

Rajna Gibson

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

University of Geneva - Geneva Finance Research Institute (GFRI) ( email )

40 Boulevard du Pont d'Arve
Geneva 4, Geneva 1211
Switzerland
+41.22.379.89.83 (Phone)

Simon Glossner

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Philipp Krueger

University of Geneva - Geneva Finance Research Institute (GFRI) ( email )

40 Boulevard du Pont d'Arve
Geneva 4, Geneva 1211
Switzerland

Swiss Finance Institute ( email )

Switzerland

Pedro Matos (Contact Author)

University of Virginia - Darden School of Business ( email )

University of Virginia
P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434 243 8998 (Phone)
434 924 0726 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty-research/directory/pedro-matos/

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Tom Steffen

Osmosis Investment Management ( email )

London
United Kingdom

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