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European Pension Funds and Sustainable Development: Trade‐Offs between Finance and Responsibility
Author(s) -
Sievänen Riikka,
Rita Hannu,
Scholtens Bert
Publication year - 2017
Publication title -
business strategy and the environment
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.123
H-Index - 105
eISSN - 1099-0836
pISSN - 0964-4733
DOI - 10.1002/bse.1954
Subject(s) - pension , global assets under management , finance , multinomial logistic regression , business , sustainable development , sustainability , balance (ability) , economics , institutional investor , corporate governance , medicine , ecology , machine learning , computer science , political science , law , physical medicine and rehabilitation , biology
Pension funds try to account for sustainable development in their operations. This mainly translates in responsible investing. We investigate how this interacts with the financial objectives. We use a survey of more than 250 pension funds based in 15 European countries. Multinomial logistic regression is used to find out how pension funds trade off sustainable development and financial objectives. Our findings suggest that pension funds that have not included responsibility in their strategy and investments have a clear priority regarding their financial performance. Pension funds who integrate sustainable development in their strategy can bring balance between finance and responsibility. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment