Socially Responsible Investments

The Crossroads Between Institutional and Retail Investors

Mario La Torre, Helen Chiappini, Mario La Torre, Helen Chiappini

• Publisher: Palgrave Pivot
• Year: 2018
• Print ISBN: 9783030050139
• eBook ISBN: 9783030050146
• Topic: Economics
• Subtopic: Financial Services
• Index: Economics

This Palgrave Pivot aims to build a bridge between corporate social responsibility (CSR) and sustainable finance in financial markets. It investigates classic CSR topics in the light of a modern conception of sustainability. The first part emphasizes four relevant topics in the CSR panorama of financial institutions: banks remuneration practices; human capital disclosure; the impact of environmental performance on banks, and finally, the institutional investors' attitude towards socially responsible investments (SRIs). The second part explores CSR practices within the financial markets and discusses risk-return profiles of SRI and non-SRI indexes in different time frames. It investigates whether thematic social responsible funds obtain different risk-return than traditional funds, and finally, assesses whether equity crowdfunding could foster social innovation. This book is aimed atscholars and students who are interested in social impact investing and practitioners involved in the social impact market.

© The Author(s) 2019

Mario La Torre and Helen Chiappini (eds.)Socially Responsible InvestmentsPalgrave Studies in Impact Financehttps://doi.org/10.1007/978-3-030-05014-6_1

Begin Abstract

1. Introduction

Mario La Torre¹   and Helen Chiappini²  

(1)

University of Rome La Sapienza, Rome, Italy

(2)

G. d’Annunzio University of Chieti-Pescara, Pescara, Italy

 

 

Mario La Torre

Email: [email protected]

 

Helen Chiappini (Corresponding author)

Email: [email protected]

Abstract

The aim of this chapter is to introduce the aim and structure of the book. Specifically, the aim of the book is to build a bridge between corporate social responsibility (CSR) and sustainable finance in financial markets. Classic CSR topics have been investigated in the light of a modern conception of sustainability. The book is organized in two main blocks. The first block emphasizes four relevant topics in the CSR panorama of financial institutions: banks remuneration practices; human capital disclosure; the impact of environmental performance on banks, and finally, the institutional investors’ attitude towards socially responsible investments (SRIs). The second block looks to CSR practices within the financial markets and discusses risk-return profiles of SRI and non-SRI indexes in different time frames; it investigates whether thematic social responsible funds obtain different risk-return than traditional funds, and finally, assesses whether equity crowdfunding could foster social innovation.

Keywords

Corporate social responsibility (CSR)Sustainable financeSustainabilitySocially responsible investments (SRIs)Financial markets

End Abstract

The aim of the book is to build a bridge between corporate social responsibility (CSR) and sustainable finance in financial markets. Classic CSR topics have been investigated in the light of a modern conception of sustainability.

The book is organized in two main blocks. The first block (Chapters 2–4) emphasizes four relevant topics in the CSR panorama of financial institutions: banks remuneration practices; human capital disclosure; the impact of environmental performance on banks, and finally, the institutional investors’ attitude towards socially responsible investments (SRIs).

The second block (Chapters 5–8) looks to CSR practices within the financial markets and discusses risk-return profiles of SRI and non-SRI indexes in different time frames; it investigates whether thematic social responsible funds obtain different risk-return than traditional funds, and finally, assesses whether equity crowdfunding could foster social innovation.

In more detail, Chapter 2 “Responsible Remuneration Policies in Banks: A Review of Best Practices in Europe”—by Stefania Sylos Labini, Antonia Patrizia Iannuzzi and Elisabetta D’Apolito—explores whether bank remunerations are aligned to a set of CSR measures, going beyond the traditional (and controversial) alignment to financial performance. Results of this analysis appear promising, although European banks need to strengthen practices in terms of measurement of social performance and of a concrete link between remuneration and social performance.

Chapter 3 “Intellectual Capital Disclosure: Evidence from the Italian Systemically Important Banks”—by Giuliana Birindelli, Paola Ferretti and Helen Chiappini—assesses the extent and accuracy reporting of intellectual capital (IC) of Italian systematically important banks. The analysis shows that Italian banks may improve both the extent and accuracy of disclosure of IC to be in line with other international competitors.

Chapter 4 “Assessing the Relationship Between Environmental Performance and Banks’ Performance: Preliminary Evidence”—by Rosella Carè and Antonio Fabio Forgione—investigates whether performance of European banks is related with their environmental disclosure and performance. Findings support the thesis of a stringent link between environmental performance and banks value.

Chapter 5 “Ready or Not, Here I Come, You Can’t Hide. Are Italian Institutional Investors Ready for Responsible Investments?”—by Duccio Martelli and Luca Testoni—analyses the institutional investors’ attitude towards SRIs. This chapter demonstrates that pension funds and family officers are more interested in SRIs than in the past, due to a growing awareness sustainability practices. However, the SRI risk-return profile does not appear always clear and understandable, limiting the investments of pension funds and family officers.

Chapter 6 “Sustainable and Responsible Investments: Same Sea, Different Fishes?”—by Alberto Burchi, Duccio Martelli and Paola Musile Tanzi—shifts the lens from financial institutions to financial markets. The chapter investigates risk-return trade-off of socially responsible indexes, taking into account different periods and different social responsible strategies. The study highlights that SRIs risk and return profile does not consistently differ from traditional investments, while they produce benefits in a portfolio view.

Chapter 7 “A New Approach to Sustainable and Responsible Investment: The Sustainability-Themed Mutual Funds”—by Federica Ielasi and Monica Rossolini—focuses on a specific category of SRI: the sustainability-themed mutual funds. The research outlines that sustainability-themed mutual funds differ in terms of risk-return both from other classes of socially responsible funds, and from themed funds that are not engaged in the SRI panorama.

Finally, Chapter 8 “Is Equity Crowdfunding a Good Tool for Social Enterprises?”—by Stefano Cosma, Alessandro Giovanni Grasso, Francesco Pagliacci and Alessia Pedrazzoli discusses the relevance of equity crowdfunding in the financing of social innovation and social change through the support of social firms. Equity crowdfunding does not appear the most suitable model for expanding social change in Italy, thus, other types of financial architectures may be implemented to support the span social innovation in Italy.

© The Author(s) 2019

Mario La Torre and Helen Chiappini (eds.)Socially Responsible InvestmentsPalgrave Studies in Impact Financehttps://doi.org/10.1007/978-3-030-05014-6_2

Begin Abstract

2. “Responsible” Remuneration Policies in Banks: A Review of Best Practices in Europe

Stefania Sylos Labini¹ , Antonia Patrizia Iannuzzi² and Elisabetta D’Apolito¹

(1)

Department of Economics, University of Foggia, Foggia, Italy

(2)

Ionian Department of Law, Econo...

Table of contents

• Cover
• Front Matter
• 1. Introduction
• 2. “Responsible” Remuneration Policies in Banks: A Review of Best Practices in Europe
• 3. Intellectual Capital Disclosure: Evidence from the Italian Systemically Important Banks
• 4. Assessing the Relationship Between Environmental Performance and Banks’ Performance: Preliminary Evidence
• 5. “Ready or Not, Here I Come, You Can’t Hide.” Are Italian Institutional Investors Ready for Responsible Investments?
• 6. Sustainable and Responsible Investments: Same Sea, Different Fishes?
• 7. A New Approach to Sustainable and Responsible Investment: The Sustainability-Themed Mutual Funds
• 8. Is Equity Crowdfunding a Good Tool for Social Enterprises?
• Back Matter