The Role of Institutional Investors as Responsible Investors

TheRoleofInstitutionalInvestorsasResponsibleInvestors RajnaGibsonBrandonandPhilippKrueger LTIReportII THEROLEOFINSTITUTIONALINVESTORSASRESPONSIBLEINVESTORS LTIReport2 CENTREFORECONOMICPOLICYRESEARCH CentreforEconomicPolicyResearch33GreatSuttonStreet LondonEC1V0DXUK 187boulevardSaint-Germain 75007,Paris,France Tel:+44(20)71838801 Fax:+44(20)71838820 Email:cepr@cepr.orgWeb:www.cepr.org ISBN:978-1-912179-71-8 LONG-TERMINVESTORS@UNITO Long-TermInvestors@UniToCollegioCarloAlbertoPiazzaVincenzoArbarello,810122TorinoTO Italy Tel:+3901115630822 Fax:+3901115630801 Email:lti@carloalberto.org Web:https://www.carloalberto.org/research/lti THEROLEOFINSTITUTIONALINVESTORSASRESPONSIBLEINVESTORS LTIReport2 RajnaGibsonBrandon UniversityofGenevaandECGI PhilippKrueger UniversityofGeneva,SwissFinanceInstituteandECGI CENTREFORECONOMICPOLICYRESEARCH(CEPR) TheCentreforEconomicPolicyResearch(CEPR)isanetworkofover1,700researcheconomistsbasedmostlyinEuropeanuniversities.TheCentre’sgoalistwofold:topromoteworld-classresearch,andtogetthepolicy-relevantresultsintothehandsofkeydecision-makers.CEPR’sguidingprincipleis‘Researchexcellencewithpolicyrelevance’.ItwasfoundedintheUKin1983,whereitisaCharity,andinNovember2019CEPRinitiatedthecreationofanAssociationunderFrenchlaw,inordertoprovideavehicleforanexpansioninFrance.ThemembersoftheConseild’AdministrationoftheAssociationareidenticaltotheUKBoardofTrustees. CEPRisindependentofallpublicandprivateinterestgroups.IttakesnoinstitutionalstandoneconomicpolicymattersanditscorefundingcomesfromitsInstitutionalMembers,projectsthatitrunsandsalesofpublications.Becauseitdrawsonsuchalargenetworkofresearchers,itsoutputreflectsabroadspectrumofindividualviewpointsaswellasperspectivesdrawnfromcivilsociety.CEPRresearchmayincludeviewsonpolicy,buttheTrustees/membersoftheConseild’AdministrationoftheAssociationdonotgivepriorreviewtoitspublications.TheopinionsexpressedinthisreportarethoseoftheauthorsandnotthoseofCEPR. ChairoftheBoardSirCharlieBeanFounderandHonoraryPresidentRichardPortes PresidentBeatriceWederdiMauro VicePresidentsMaristellaBotticiniPhilippeMartinUgoPanizza MarReguantHélèneRey ChiefExecutiveOfficerTessaOgden LONG-TERMINVESTORS@UNITO(LTI@UNITO) Long-TermInvestors@UniTo(LTI@UniTO)isathinktankestablishedin2017asajointinitiativeofsomeofthemajorItalianmarketplayersinlong-termfinancingandtheUniversityofTorino.LTI@UniTOaimstofosterlong-terminvestingintherealeconomyamonginstitutionalinvestors,growthandstability.Thethinktanksupportsindependentresearch,promoteseducationonlong-terminvestingandorganizeseventstobringtogethertheperspectivesoflong-terminvestors,regulatorsandpolicymakers. LTI@UniTOpublishestheLTIReportstogetherwithCEPR,withtheaimoffosteringthedebateonrelevantandtimelylong-terminvestmentissues.TheviewsexpressedinthepresentreportarethoseoftheauthorsandnotofLTI@UniTOoranyofitssponsors. PietroGaribaldiistheDirectorofLTI@UniTO. Abouttheauthors RajnaGibsonBrandonisaFullProfessorofFinanceattheUniversityofGenevasinceSeptember2008.SheisthefounderandwasDirectoroftheGenevaFinanceResearchInstitute(GFRI)attheUniversityofGenevabetween2009and2016andistheChairwomenandManagingDirectoroftheGenevaInstituteofWealthManagement(GIWM)since2016.From2007until2015,shewasHeadofResearchattheSwissFinanceInstitute.ShewastheDirectoroftheNationalCentreofCompetenceinResearchFinriskfrom2001to2009.ShewaspreviouslyProfessorofFinanceattheUniversityofZurichandattheUniversityofLausanneandshewasAssistantProfessorinFinanceatHEC,Paris.SheholdsaPhDinEconomicSciencesfromtheUniversityofGeneva.ShewasalsoMemberoftheBoardofDirectorsofSwissRefromJune2000toApril2018andis,sinceNovember2018,aMemberoftheBoardofDirectorsofGroupBNP,Franceand,sinceMay2022,aMemberoftheBoardofDirectorsoftheSwissNationalBank(SNB).SheisalsoaMemberoftheSurveillanceBoardofSustainableFinanceGeneva,aMemberoftheAcademicAdvisoryBoardofRepRiskandwasaMemberoftheSwissFederalBankingCommission(currentlyFINMA)from1997to2004.Herresearchinterestscoverassetpricing,aswellasexperimentalandsustainablefinance. PhilippKruegerisaFullProfessorofFinanceattheUniversityofGenevaandholdsaSeniorChairattheSwissFinanceInstitute.HeisalsoaResearchMemberatECGI.AfterstudyingEconomicsandFinanceinGermany,theUnitedStates,France,andtheUnitedKingdom,hegraduatedwithaPhDinEconomicsfromtheToulouseSchoolofEconomicsin2010.Hisresearchinterestsareincorporate,sustainable,andbehavioralfinance.Hisresearchhasbeenpublishedintheleadingscientificandprofessionalfinancejournals(JournalofFinance,JournalofFinancialEconomics,ReviewofFinancialStudies,FinancialAnalystJournal).ProfessorKrügerisaregularspeakeratleadingfinanceconferencesworldwide.HisresearchhasreceivednumerousawardsfromorganizationsliketheBSIGammaFoundation,ThePrinciplesforResponsibleInvestment,theInternationalCentreforPensionManagement,ortheEuropeanFinancialManagementAssociation.In2015,hereceivedtheprestigiousMoskowitzawardforoutstandingresearchinresponsiblefinance.HeservesontheboardofexpertsforInrateAGinZurichandadvisesoneofthemajorSwissbanksonESGinvesting. Acknowledge