scholarly journals Get Real! Individuals Prefer More Sustainable Investments

2021 ◽  
Author(s):  
Rob Bauer ◽  
Tobias Ruof ◽  
Paul Smeets
Keyword(s):  
Sustainable Development Goals ◽  
Pension Fund ◽  
Social Preferences ◽  
Investment Policy ◽  
Performance Support ◽  
Political Pressure ◽  
Field Surveys ◽  
Sustainable Investment ◽  
Development Goals ◽  
Sustainable Investments

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.

scholarly journals An Analysis on the NASDAQ’s Potential for Sustainable Investment Practices during the Financial Shock from COVID-19

2021 ◽  
Vol 13 (7) ◽  
pp. 3748
Author(s):  
Rachel Shields ◽  
Samer Ajour El Zein ◽  
Neus Vila Brunet
Keyword(s):  
Business Practices ◽  
Sustainable Business ◽  
Global Crisis ◽  
The Sustainable Development ◽  
Sustainable Investment ◽  
Development Goals ◽  
Sustainable Investments ◽  
Corporate Social ◽  
The Garch Model ◽  
Difficult Times

There is a growing demand for sustainable business practices and for sustainable and impact investment as has been signaled by the Sustainable Development Goals ratified by all the United Nations members. However, there is not that much evidence on how sustainable investments perform during crises compared to regular investments. This paper investigates if sustainable investments within the NASDAQ have a lower volatility rate when reacting to a significant global crisis such as the COVID-19 pandemic. It groups the shares of businesses with Corporate Social Responsibility (CSR) practices that are ranked 70% or higher given by CSRHub, Inc. and compares it to business shares with the lowest-ranked CSR business practices at 30% or lower. The top 30% and bottom 30% CSR stocks’ volatility will be predicted using variations of the GARCH model. The top 30% CSR stocks of the NASDAQ had a lower rate of volatility for a global crisis than the bottom 30% CSR stocks. Technology is the only sector whose top 30% showed higher volatility. However, the top 30% of companies in the Health Care and Utilities sectors show a higher increase in returns and a lower drop in returns. These results signal the higher uncertainty associated with some cutting-edge products and services offered by the top 30% of technology companies and the preference for more established companies that offer higher quality services when it comes to satisfying basic needs such as health and utilities in difficult times.

scholarly journals Will the DAX 50 ESG Establish the Standard for German Sustainable Investments? A Sustainability and Financial Performance Analysis

2020 ◽  
Vol 53 (4) ◽  
pp. 461-491
Author(s):  
Martin Nerlinger
Keyword(s):  
Financial Performance ◽  
Sustainable Development Goals ◽  
Stock Exchange ◽  
Investor Attention ◽  
The Sustainable Development ◽  
Sustainability Performance ◽  
Short Run ◽  
German Stock ◽  
Development Goals ◽  
Sustainable Investments

The demand for sustainable investments is growing worldwide. As a result, the DAX 50 ESG was introduced in March 2020 as the first ESG index by the German stock exchange. It is promoted as the new standard for German sustainable investments. We are the first to comprehensively examine the financial and non-financial performance of the index and its constituents. Therefore, we examine the sustainability performance using both ESG criteria and the alignment of products and services with the Sustainable Development Goals. Our results show that the DAX 50 ESG may only to a limited extent be promoted as the most sustainable German index. Moreover, since inception as well as during the COVID-19 crisis, the DAX 50 ESG’s financial performance is comparatively worse. Our findings suggest that stock markets penalize the inclusion of a firm in the DAX 50 ESG in the short run, thus affecting the overall index performance. Our analysis of the DAX 50 ESG further increases investor attention to sustainable financial products and enables better investment decisions.

scholarly journals Impact-Investing in The Healthcare in Terms of the New Socially Responsible State Investment Policy

2020 ◽  
Vol 4 (3) ◽  
pp. 57-64
Author(s):  
Julia Yelnikova ◽  
Aleksy Kwilinski
Keyword(s):  
Health Care ◽  
Sustainable Development ◽  
Sustainable Development Goals ◽  
Public Investment ◽  
Investment Policy ◽  
Socially Responsible ◽  
Impact Investing ◽  
Development Goals ◽  
State Investment ◽  
The Impact

The article reveals the issue regarding the implementation of impact-investing in the health care system and its comparison with other traditional investment mechanisms. The relevance of the study is to show the destructive impact of the COVID-19 pandemic on investment processes. According to the WHO and the UN, the global pandemic, unpreparedness of the Ukrainian health care system, and the lack of progress in achieving the Sustainable Development Goal 3 calls into question the conclusions of the Voluntary National Review “Sustainable Development Goals Ukraine 2020”. The investment instruments against COVID-19 in 2020 are conceptualized. The private companies’ assistance in this fight is studied. The study defines that most assistance is charitable rather than investing. Given the systematic and integrated practices of socially responsible business support for the health sector in SER companies’ strategy or the implementation of public-private partnerships in this area, such support could be transformed into mutually beneficial investment projects and after overcoming the pandemic impact. The authors prove that impact-investing is a useful tool for building and restoring the economy through a new socially responsible state investment policy. The current state of public investment project implementation in the health care field is assessed. According to the results, it is necessary to improve transparency, investment monitoring of projects and executive discipline in their implementation. Lack of generally accepted standards of transparency, measurement and impact management, along with an unformed system of benchmarks minimizing reputational risks and reducing transaction costs in the market of impact-investing and responsible investment in general (considering data from surveys of the Global Network on impact-investing) are fundamental limitations which hinder its development, in particular in Ukraine. Recommendations are given to develop the impact-investing in the context of new public investment policy to overcome these limitations, regarding the best practices in promoting the impact-investing policy. Keywords: Impact-investing, Investment Policy, Investors, Sustainable Development Goals, Social Responsibility, State Investment Policy.

scholarly journals Integrating Sustainable Development Goals into the Belt and Road Initiative: Would It Be a New Model for Green and Sustainable Investment?

2019 ◽  
Vol 11 (24) ◽  
pp. 6991 ◽  
Author(s):  
Wei Yin
Keyword(s):  
Sustainable Development ◽  
Sustainable Development Goals ◽  
Sustainable Growth ◽  
Development Model ◽  
Infrastructure Development ◽  
Belt And Road Initiative ◽  
Belt And Road ◽  
Sustainable Investment ◽  
Development Goals ◽  
The Belt And Road

Given the challenges presented by climate change and related environmental pressure, a sustainable, investment-led development model, i.e., aligning investment with social and sustainability objectives, is needed to ensure long-term prosperity and generate sustainable growth. The UN’s Sustainable Development Goals (SDGs) was released to guide nations towards green and sustainable development and address governance deficits. The Belt and Road Initiative (BRI) launched by China, a development strategy involving investment in infrastructure development, intends to enhance regional connectivity, integration, and stimulate economic growth. These two agendas share the notion of ‘sustainable development’ and are growing increasingly relevant. Although various studies have analysed the sustainability of the BRI, the implementation of SDGs and the similarities and complementarities between the two initiatives, few of them touched on the possibility of the BRI to be a green and sustainable investment-led model by aligning the SDGs. This paper, thus, aims to contribute to the ongoing debate on sustainable development and infrastructure investment by exploring the possibilities and challenges of the BRI to be a sustainable, investment-led development model. By comparing these two agendas and seeking the linkages between them, this article recognises the potential of the BRI to play such a role while there are issues and risks of BRI that hinder the achievement of infrastructure development and sustainable investment. The paper recommends that, to exert the synergies from aligning the BRI and SDGs to seize substantial development benefits, it is necessary to enhance the sustainability of BRI projects, provide effective cooperation and communication with stakeholders, and adapt BRI to the national development policies of each partner country. Joint efforts taken by both state and non-state actors are indispensable.

scholarly journals CAN YALE ENDOWMENT MODEL BE APPLIED FOR ISLAMIC PENSION FUND?

2018 ◽  
Vol 3 ◽  
pp. 131-162
Author(s):  
Yunice Karina Tumewang
Keyword(s):  
Asset Allocation ◽  
Sustainable Development Goals ◽  
Pension Fund ◽  
The Elderly ◽  
Investment Model ◽  
Financial Inclusion ◽  
Pension Systems ◽  
Proposed Model ◽  
Development Goals

This paper examines Yale Endowment model and proposes a modified investment model to achieve an investment objective of mainstream investors and to comply with Sharia principle. The proposed model utilizes Islamic CAPM to formulate the optimal asset allocation for Islamic pension fund’s portfolio. It will offer a strong investment strong which could be adopted by government to manage the Islamic pension fund and raise the awareness of society to see the great potential of Islamic pension fund in the future. Promoting an efficient and productive investment of pension-fund assets not only helps reaching Sustainable Development Goals (SDGs) by providing important sources of long-term finance for development, supporting financial inclusion and ensuring that poverty among the elderly is alleviated by a strong growth and resilience of income in retirement through pension systems that have broad coverage.

Restructuring Educational Systems and Promoting Social Justice for Young People Involved in Drug Trafficking in Brazil

2019 ◽  
Vol 227 (2) ◽  
pp. 139-143 ◽  
Author(s):  
Alex Sandro Gomes Pessoa ◽  
Linda Liebenberg ◽  
Dorothy Bottrell ◽  
Silvia Helena Koller
Keyword(s):  
Sustainable Development ◽  
Social Justice ◽  
Young People ◽  
Latin American ◽  
Drug Trafficking ◽  
Sustainable Development Goals ◽  
Educational Systems ◽  
Economic Changes ◽  
2030 Agenda ◽  
Development Goals

Abstract. Economic changes in the context of globalization have left adolescents from Latin American contexts with few opportunities to make satisfactory transitions into adulthood. Recent studies indicate that there is a protracted period between the end of schooling and entering into formal working activities. While in this “limbo,” illicit activities, such as drug trafficking may emerge as an alternative for young people to ensure their social participation. This article aims to deepen the understanding of Brazilian youth’s involvement in drug trafficking and its intersection with their schooling, work, and aspirations, connecting with Sustainable Development Goals (SDGs) 4 and 16 as proposed in the 2030 Agenda for Sustainable Development adopted by the United Nations in 2015 .

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