Socially Responsible Investment: Development & Impact

Globally, more than 30 trillion dollars is invested in socially responsible investing (SRI). In the Netherlands, this is done for example by pension funds. In his dissertation, Frank Wagemans investigated how socially responsible investing (SRI) develops and whether it is effective in driving sustainable development.

Regarding the development of SRI, the research shows that pension funds go through a fixed pattern in which integration into a pension fund's strategy only takes place in later phases. Additionally, the results indicate that Dutch pension funds converge in their SRI approaches over time, particularly when they have the same asset manager.

In terms of impact on sustainability, excluding certain companies is not directly effective in bringing about change. Engaging in dialogue with companies is potentially effective, but this potential is not yet fully utilized. It can be made more effective by employing escalation mechanisms such as filing shareholder resolutions and forming collaborations within and beyond the financial sector.