There is a growing awareness of, and commitment to, Responsible Investment (RI) in the institutional investment markets internationally. RI is defined as the consideration of environmental, social and/or governance (ESG) issues in long-term oriented investment decision-making. As the role of ESG in determining investment risk and opportunity becomes more evident, and as ESG data becomes more available, RI is increasingly seen as an area of potential investment innovation. This thesis applies institutional, evolutionary and relational economic geography theories to examine this trend, exploring the mainstreaming of RI through novel empirical and conceptual research. This thesis examines the investment learning processes and information channels available in Western liberal market economies of the UK, US and Australia. It adopts economic geography knowledge and innovation frames towards answering the question: 'Now that ESG information is more widely available in the investment markets, why has this not catalysed a greater shift towards RI integration in mainstream investment decisions?'. Learning, language and leadership factors within the institutional investment industry are all argued to help answer this question. This research uses a mixed method approach, with analysis based on a survey of 154 investment professions, 97 semi-structured interviews and a case of RI innovation. This thesis develops a conceptual framework of the communication channels and information sources used in investors' innovation-decision-process, drawing attention to the importance of both social and asocial learning processes in generating and sharing knowledge about climate issues within investment markets. Following this, the thesis examines the role of 'local buzz' and 'global pipelines' in facilitating access to, and uptake of, ESG information. Levels of buzz and pipelines are found to vary in different financial centres, and are facilitated by formal and informal networking linked to RI groups. Importantly, then, this thesis finds that both spatial and relational proximity influence investors' access to ESG information and RI knowledge. The second half of this thesis examines whether and how RI information, knowledge and practice can be integrated into existing individual and organisational decision-making frameworks. It highlights the need to better translate RI information into investment-relevant language, and provides an example of how environmentally-driven stranded assets can be reframed as a version of sunk costs, contributing novel spatial-temporal theorisations of this concept. Through an illustration of RI decision-making by the investment consultant Mercer and the University of Sydney endowment fund, this thesis highlights that the capacity to integrate RI through the investment chain does exist. However, willingness to do so is found to be hindered by institutional and organisational path dependent norms, reduced only in some firms by seeing RI as an innovative area of competitive advantage from growing client demand. This thesis therefore finds that RI is being adopted in increasingly more mainstream investment firms, but this is not always fully integrated throughout the firm, and that uptake is geographically varied based on exposure to networks of information and knowledge sharing, and institutional, organisational and individual norms. Ultimately, this thesis therefore contributes towards understandings of the processes underpinning the mainstreaming of RI, but also contributes to broader economic geographies of investment, knowledge sharing and innovation.

Changes in economic, environmental and social conditions have exposed our society to many challenges such as hunger and poverty, epidemic diseases and dramatic climate changes. As business entities operating within the community, companies have the immense task of assisting the community to address these challenges. To carry out this task, companies use socially responsible investment (SRI) initiatives in the effort to give back to local communities. These initiatives focus on environmental, social and economic activities that seek to improve the wellbeing of the community at large. The theoretical explanations behind SRI strategies tend to stimulate discussions and contestations about the motive behind SRI initiatives and their relevance to the companies and the community concerned. Some theories purport that a company should have a sole social responsibility goal of creating wealth for its shareholders, while others consider SRI initiatives as a means of interaction between a company and its immediate community. Despite these different views, SRI theories concur that companies’ SRI initiatives can contribute to economic development. The study reported in this document used a combination of qualitative and quantitative research methods to analyse the effects of the SRI sector on micro- and macroeconomic development in South Africa. The key empirical objectives of the study were to: assess the effect of SRI initiatives on the financial performance of South African companies; determine the volatility of the SRI Index relative to the overall stock market; establish the interactions between various macroeconomic variables and the South African SRI sector; identify the involvement of the local community in designing SRI initiatives; determine local communities’ perceptions towards implementation of SRI initiatives; and assess how various socioeconomic and demographic characteristics of community members affect their perceptions towards SRI initiatives. Primary data were collected through interviews and quetiapine; while secondary data running from May 2004 to June 2014 was obtained from the JSE, McGregor BFA and SARB. The data include variables such as the share returns of companies in the SRI Index and various macroeconomic variables. The econometric models used to analyse the data included the Johansen co-integration test, vector error correction model (VECM), generalised autoregressive conditional heteroscedasticity (GARCH), autoregressive distributed lag (ARDL) model, Granger causality test, the event study methodology and binary logistic regression. Results of the event study methodology showed that an improvement in companies’ involvement in SRI initiatives is linked with positive returns; however, such positive returns were not statistically significant. On the contrary, a decline in a company’s involvement in SRI initiatives is associated with significant negative abnormal returns. Further analysis showed that the South African SRI index is not exposed to any unique volatility. The analysis on the relationship between the SRI Index (a proxy for the sector) and macroeconomic variables suggests that development of the South African SRI sector is linked with macroeconomic growth and stability. To analyse the effect of SRI initiatives at a microeconomic level, an SRI initiative of implemented by a specific company in Bophelong Township formed the basis of the analysis. Findings revealed that this initiative benefited less privileged community members through the creation of temporary employment and provision of skills that created opportunities for future employment. Households with low economic status, those headed by a female or unemployed head were the most satisfied with the SRI initiative compared to others beneficiaries of the SRI initiative. Thus, the SRI initiative positively impacted the relationship between the company and community members, while at the same time creating expectations for future initiatives within the community. This study concluded that SRI initiatives must be aligned with the needs of the community in order to contribute to both micro- and macroeconomic development. As much as companies are expected to implement socially responsible initiatives, community members should also be encouraged to meet these companies halfway through programmes such as volunteering. Findings of this study can assist policy makers and companies in aligning SRI initiatives with the needs of the community, improving the involvement of community members in SRI initiatives, developing strategies to reduce the costs associated with SRI initiatives and, hence, increasing the impact of SRI initiatives. / PhD (Economics)--North-West University, Vaal Triangle Campus, 2015.

Changes in economic, environmental and social conditions have exposed our society to many challenges such as hunger and poverty, epidemic diseases and dramatic climate changes. As business entities operating within the community, companies have the immense task of assisting the community to address these challenges. To carry out this task, companies use socially responsible investment (SRI) initiatives in the effort to give back to local communities. These initiatives focus on environmental, social and economic activities that seek to improve the wellbeing of the community at large. The theoretical explanations behind SRI strategies tend to stimulate discussions and contestations about the motive behind SRI initiatives and their relevance to the companies and the community concerned. Some theories purport that a company should have a sole social responsibility goal of creating wealth for its shareholders, while others consider SRI initiatives as a means of interaction between a company and its immediate community. Despite these different views, SRI theories concur that companies’ SRI initiatives can contribute to economic development. The study reported in this document used a combination of qualitative and quantitative research methods to analyse the effects of the SRI sector on micro- and macroeconomic development in South Africa. The key empirical objectives of the study were to: assess the effect of SRI initiatives on the financial performance of South African companies; determine the volatility of the SRI Index relative to the overall stock market; establish the interactions between various macroeconomic variables and the South African SRI sector; identify the involvement of the local community in designing SRI initiatives; determine local communities’ perceptions towards implementation of SRI initiatives; and assess how various socioeconomic and demographic characteristics of community members affect their perceptions towards SRI initiatives. Primary data were collected through interviews and quetiapine; while secondary data running from May 2004 to June 2014 was obtained from the JSE, McGregor BFA and SARB. The data include variables such as the share returns of companies in the SRI Index and various macroeconomic variables. The econometric models used to analyse the data included the Johansen co-integration test, vector error correction model (VECM), generalised autoregressive conditional heteroscedasticity (GARCH), autoregressive distributed lag (ARDL) model, Granger causality test, the event study methodology and binary logistic regression. Results of the event study methodology showed that an improvement in companies’ involvement in SRI initiatives is linked with positive returns; however, such positive returns were not statistically significant. On the contrary, a decline in a company’s involvement in SRI initiatives is associated with significant negative abnormal returns. Further analysis showed that the South African SRI index is not exposed to any unique volatility. The analysis on the relationship between the SRI Index (a proxy for the sector) and macroeconomic variables suggests that development of the South African SRI sector is linked with macroeconomic growth and stability. To analyse the effect of SRI initiatives at a microeconomic level, an SRI initiative of implemented by a specific company in Bophelong Township formed the basis of the analysis. Findings revealed that this initiative benefited less privileged community members through the creation of temporary employment and provision of skills that created opportunities for future employment. Households with low economic status, those headed by a female or unemployed head were the most satisfied with the SRI initiative compared to others beneficiaries of the SRI initiative. Thus, the SRI initiative positively impacted the relationship between the company and community members, while at the same time creating expectations for future initiatives within the community. This study concluded that SRI initiatives must be aligned with the needs of the community in order to contribute to both micro- and macroeconomic development. As much as companies are expected to implement socially responsible initiatives, community members should also be encouraged to meet these companies halfway through programmes such as volunteering. Findings of this study can assist policy makers and companies in aligning SRI initiatives with the needs of the community, improving the involvement of community members in SRI initiatives, developing strategies to reduce the costs associated with SRI initiatives and, hence, increasing the impact of SRI initiatives. / PhD (Economics)--North-West University, Vaal Triangle Campus, 2015.

Since their creation in Europe in the seventeenth century, pension funds have grown to become one of the main sources of capital in the world. A number of role players ultimately manage the pension money of members on their behalf. Accordingly, the focus of this study is on the role players involved in the actual investment of pension fund money. For the purposes of the study, the key role players in the pension fund investment chain are identified as pension fund trustees, asset managers and asset consultants. These role players have a specific responsibility in terms of the service that they ought to provide. One of the key aspects of this dissertation is therefore determining whether their responsibility is a fiduciary responsibility. The main purpose of the study is, however, to answer one overarching research question: Does fiduciary responsibility create barriers to the implementation of responsible investment in the South African pension fund investment chain? Clearly, there are two key terms in this research question, fiduciary responsibility and responsible investment. It is suggested that responsible investment takes at least two forms: a “business case” form1 in which environmental, social and governance (ESG) issues are considered only in so far as they are financially material; and a social form in which ESG issues are considered over maximising risk adjusted financial returns. Three key questions were asked in order to find qualitative descriptions and interpretations of fiduciary responsibility: Question 1: Are the key role players in the pension fund investment chain fiduciaries? Question 2: If so, to whom do the key role players owe their fiduciary duty? Question 3: What are the fiduciary duties of the key role players in the pension fund investment chain? It is also suggested that the duty to act in the best interests of beneficiaries could be described as the all-encompassing fiduciary duty. Two main interpretations of the / Private Law / (LL.M.(Private Law))

Purpose: The purpose of this thesis is to develop an understanding for how risk, return and ethicalaspects affect the decision to invest in an ethical fund. Specifically is the aim of the thesis todevelop a perception if socio-demographical differences regarding gender, age and education canexplain the propensity to invest in ethical funds. Method: A survey consisting of 90 respondents. Conclusion: The thesis finding show support for the claim that women see the ethical aspect inrelation to the return for investment in an ethical fund as more important than men do. This canfurther explain the propensity for women to invest more in ethical funds than men. The thesisdoesn’t find any support for the claim that women and men, younger and older value low risk, forthe decision to invest in an ethical fund, differently. This goes against previous research within thefield of mutual fund and indicates that the investment behavior between ethical funds and regularfunds differ. The thesis did not find any support for the claim that higher educated people see theethical aspect in relation to the return as more important than people with lower education. / Syfte: Studien syfte är att utveckla en förståelse för hur risk, avkastning och etiskt inslag påverkarvid beslutet som leder till investering i en etisk fond. Specifikt syftar uppsatsen till att utvecklauppfattning kring om socio-demografiska skillnader avseende kön, ålder och utbildning, finns somförklaring i benägenheten att investera i etiska fonder. Metod: Vi har gjort enkätundersökningar på 90 respondenter Slutsats: Uppsatsen finner stöd för att kvinnor ser den etiska aspekten i relation till avkastningenvid investering i en etisk fond som viktigare än vad män gör. Detta kan förklara varför kvinnorockså är mer benägna än män att investera i en etisk fond. Uppsatsen finner inget stöd för attkvinnor och män, yngre och äldre värderar låg risk vid investering i en etisk fond olika. Dettamotsäger tidigare forskning inom investeringsbeteende för fonder generellt sett vilket indikerar attinvesteringsbeteende för vanliga fonder och etiska fonder skiljer sig åt. Uppsatsen finner helleringet stöd för att högre utbildade ser den etiska aspekten som viktigare än avkastning vidinvestering i en etisk fond.

How can you use your money to make the world a better place? This research explores how institutional shareholders can use their position of ownership to influence corporations with regards to issues such as human rights, labour conditions, and the environment (otherwise known as CSR). This work, comprised of six separate studies, shows that translation processes, which can bridge the disparate institutional logics of the corporate sector with the logics of the environmental protection and social justice sectors, enables shareholders influence on CSR. This research also introduces the notion that shareholders can act in a capacity of norm entrepreneur and norm promoter, suggesting that shareholders can influence corporations in more far-reaching ways than changing single instances of behaviour. / <p>Diss. Stockholm : Handelshögskolan, 2009 Sammanfattning jämte 6 uppsatser</p>

This study addresses the green bond market, a young and upcoming market that has received increasing attention in recent years. Academic literature in the field is limited, therefore theaim of this study is to identify investors’ main barriers and motives behind green bondinvestments. In order to examine Swedish fund companies’ requirements to invest in greenbonds, questionnaire responses were linked to interviews. The overall result shows the importance of financial incentives in investment decisions. In terms of market barriers, the low return of green bonds was the main reason that investments were restrained. It has been stated that green bonds are issued at a premium due to an additional reporting related administrative cost for the issuers. Another defined limit was the concern for issuers not fulfilling their 'green' obligation. The main motive behind green bond investments was to invest in a sustainable environment followed by the possibility to gain a combined financial and environmental return. In addition to the financial attributes, investors find a utility function in the green bonds that account for the premium price that these investors seem to accept. Furthermore, social norms are shown to influence the investment decision to a lesser extent.

In today’s society sustainability has become a highly discussed topic due to the increase in global average temperatures and changing ecosystems. Despite differentiating views regarding the origins of these changes, a proportion of the society have begun to adjust themselves into having more green profiles. This has led to an uprising among the number of investors who focus on making socially and responsible investments. However, on the contrary, there is still a substantial proportion of investors who do not invest in environmentally, animal and human friendly products. Which in turn may negate the pace of the ethical and sustainable development of our society. This issue leads to this study’s research question: What are the reasons or hindrances as to why students at Umeå School of Business and Economics do not invest in SRI financial products?   The main purpose of this paper is to explore why individuals at Umeå School of Business and Economics do not invest in SRI financial products. Furthermore, the paper aim to have an extra emphasis on information. In addition to the main purpose, the thesis will investigate if any links exist between investing ethically/sustainable and one’s daily behaviour. In order to explore these purposes, the authors uses past research within this area together with theoretical concepts regarding “Investment Decisions”, “Markowitz Portfolio Optimisation Model” and “Pro-Social Behaviour”. To conduct this study, the paper uses a quantitative approach with both primary and secondary data. The primary data is collected through a survey sent out to 917 students at Umeå School of Business and Economics. In order to achieve the purposes of this study, the data from non-SRI investors was used to analyse their investment behaviours.   The results of this study indicate that the majority of non-SRI investors are men. Furthermore, the findings illustrate that the expected financial return of SRI and risk when investing is significantly related to the probability of not investing in SRI. Additionally, the results point at that the demeanour of not investing in SRI products are significantly due to a lower level of knowledge concerning financial return of SRI. In conclusion, the authors argue that the attraction of capital ethical and sustainable investments can be greatly increased by educating investors in SRI products. Consequently, the increase in awareness and attraction of capital can aid solving the ethical and sustainable issues that exists today.

Corporate Social Responsibility (CSR) is a much debated and ever changing topic. From a South African context, one of the most recent means of measuring CSR has been through the use of the Johannesburg Stock Exchange (JSE) socially responsible investment index (SRII). The JSE SRII was first introduced in 2004 and has grown in popularity and effectiveness since. Included amongst the criteria for inclusion in this index is compliance with black economic empowerment (BEE). The index measures companies against the triple bottom line (environment, society&economy). Companies included in the index are deemed to have good CSR practices. This study evaluates the effects of CSR on the corporate financial performance (CFP) of the top 100 listed companies on the JSE over a 10 year period (2002-2011). The findings of the study suggest that companies not included in the SRII, on average, perform better than SRII companies. The basis of this conclusion is on the analysis of the results of the total return index (TRI), return on assets ratio (ROA) and the net profit margin percentage (NPM). / Dissertation (MCom)--University of Pretoria, 2013. / Financial Management / unrestricted

Increasing awareness of sustainable issues is just one of the ways how modern society has evolved. Due to the growing challenges faced by climate change and societal issues, our world has grown to be more innovative in the fight and support towards initiatives that will contribute to the long-term of the world we live in. Capitalists have exploited the resources, and as such, it is the economy where we can make the most significant changes to reverse the negative consequences. Responsible investment has incorporated various financial tools oriented towards the support of environmental, societal, and governance practices to revert the adverse effects brought on by capitalism. Sustainable bonds are a type of fixed income financial tool to support responsible investment practices. Their motive is to drive the financing of projects oriented towards positively contributing to the environment, society, and governance.   Previous studies on the field of responsible investment have covered the topic of green bonds and, most recently, social bonds. Although this field is relatively new, much of the literature developed has focused on the financial returns of such fixed-income assets. This thesis is the first to attempt the study of a self-created Swedish Sustainable Bond index consisting of 156 sustainable bonds issued in the Swedish market in correlation to three other asset classes. General interests and a lack of research due to its contemporary issuance in this context brought us to study such relation of return characteristics with its conventional bond counterpart, the equity market, and the energy stock section all within the Swedish market. The objective, as such, was to determine whether such an instrument could be used as a diversification tool.   For us to be able to conduct this study, we utilized the returns of each category’s indices. We applied different statistical models and tests, including correlation, univariate, and multivariate GARCH models, to be able to ensure robust results that could yield thought-provoking results for us to analyze. In conjunction with the Modern Portfolio Theory, we were able to determine that sustainable bonds provide investors with some diversification benefit by a positive correlation with the conventional bond and negative correlations with the equity and energy stock market. Volatility clustering and spillover effects within the Swedish sustainable bonds and the identified markets were also present.   We went a step ahead and curious to explore whether the conventional bond market was better off than the sustainable bond market. Such results indicate that the conventional bond is still a better tool for diversification purposes with the other two asset classes selected in comparison to the Swedish Sustainable Bond. As such, we are still wishful that sustainable bonds could potentially change their behavior in the future as a diversification tool, as more regulations and standardization of such asset classes are implemented.