Get Real! Individuals Prefer More Sustainable Investments

TLDR

The United Nations’ Sustainable Development Goals have pressured pension funds to adopt sustainable investing. The study surveyed 1,669 and 3,186 members of a pension fund that gives members a real vote on its sustainable‑investment policy. Two‑thirds of participants are willing to expand engagement with SDG‑aligned companies even when they expect lower financial performance, and support remains strong after implementation, driven by strong social preferences.

Abstract

Abstract The United Nations’ Sustainable Development Goals (SDGs) have created societal and political pressure for pension funds to address sustainable investing. We run two field surveys (n = 1,669, n = 3,186) with a pension fund that grants its members a real vote on its sustainable-investment policy. Two-thirds of participants are willing to expand the fund’s engagement with companies based on selected SDGs, even when they expect engagement to hurt financial performance. Support remains strong after the fund implements the choice. A key reason is participants’ strong social preferences.