CORDIS - EU research results

The role of Technology, Models, and Metrics in the Socially Responsible Investing Field

Final Report Summary - SRITECH (The role of Technology, Models, and Metrics in the Socially Responsible Investing Field)

Starting shortly after the 2008 financial crisis, the SRITECH project aimed at understanding the Socially Responsible Investing field. Building on more than 150 interviews, and observing work practices in financial institutions and funds operating across the globe, the research team developed a much deeper understanding of why this field is growing, and the potential it has to change the way we think about financial investments, and drive more sustainable corporate practices. Our findings show the role that valuation technologies can play in the diffusion of SRI, and the conditions under which they can be effective. Also, we show how shareholder engagement (the informal dialogue between shareholders and corporate managers), can affect corporate behaviour on environmental, social and governance issue. Our findings here help identify the mechanisms for effective engagement, in terms of progress on the issues, and the mitigation effect on the negative reputation consequences of public protests targeted corporations. Taken together, our studies highlight numerous innovative projects and organizations that will contribute further to the transformative journey the sector started after the crisis. With any hope, it will help matters to move in the direction of a more harmonious integration of social impact in financial investment.