It is becoming increasingly clear that the transition in sustainability presents organizations with big choices, and decision makers need to change their strategy, investment process and organization. Institutional investors construct and re-organize portfolios with billions of euros based on sustainability criteria, but is it clear which of these positively contribute? Using quantitative criteria like ESG rankings seemed the way forward for a while, but critical analyses pointed to inconsistencies in the methodology, usage or impact. So how to construct a sustainable investment universe in a meaningful way – and to what purpose? For example, when investors get heavily involved with companies to put sustainability issues on the agenda, does that really change anything in terms of intended outcomes? Opinions on this subject abound, but more important is to start with what we know. 

In this project, we are developing a platform where we present two key topics in an accessible way:

1. what do we know about key sustainability topics,
2. how are they embedded in the investment or (financial) decision process and
3. what are implicit or explicit barriers and how to solve them?

After having identified the important questions for financial institutions and long-term investors, we rigorously test resulting hypotheses. We do this in an easily accessible way. We try to focus on the question, collect relevant data, see what can be objectively established and what cannot yet be established. All these steps are geared towards answering the question: what can change effectively in the organisation and decision making? We foster debate and always translate our research findings into actionable practices relevant towards the laws and regulations by which financial institutions need to substantiate their sustainability choices.

Get in touch with our scholars to discuss opportunities for collaboration by contacting them directly, or write us at c.g.koedijk@vu.nl.