2° Investing Initiative, in collaboration with BETTER FINANCE, will launch and discuss a new series of research papers focused on individual investors’ sustainability investment objectives, compliance of environmental marketing claims, and consent of beneficiaries on the use of shareholder voting rights.
Our survey results and literature review suggest that two-thirds of individual investors have sustainability investment objectives, and 40% want to have a measurable environmental impact in the real economy.
Meanwhile, we found that half of the 230 “sustainability-themed” retail funds we analysed make environmental impact claims, and almost none of them comply with regulatory guidance that requires claims to be specific, unambiguous and substantiated.
Another principal-agent problem relates to the use of shareholder voting rights by fund managers. While impact-oriented individual investors seem to favour engagement and use of voting rights as the best mobilization mechanism, voting rights legally belong to fund managers – who do not consult individual investors on their use.
We will be in contact soon with more details. In the meantime, please RSVP and email firstname.lastname@example.org with any questions!