The pension sector is characterized by complex interdependencies among stakeholders. Pension providers manage pension participants’ funds and invest them in companies. Many decisions are based not only on individual preferences but also on beliefs about what others value, which will influence behavior. For example, pension providers may not feel responsible for acting (e.g., investing solely in innovative renewable energy companies rather than traditional fossil fuel companies) if they assume participants do not support this. Similarly, companies may not feel compelled to adopt new sustainable practices or business models if they believe pension providers will only invest in ventures with proven financial returns. Likewise, pension participants may not feel responsible for taking action (e.g., by sharing their beliefs and preferences with pension providers) if they feel isolated in their preferences and unable to reach decision-makers. Furthermore, since decisions are made for or by others, it becomes easy to disengage from the topic and morally accept unsustainable investments, even if they conflict with one’s personal values, which may further discourage stakeholders from driving change. The distance between the three key groups of stakeholders studied in this project and limited direct interaction among them (e.g., only indirectly via employers or asset managers, if at all) could lead to potential biases and misperceptions, influencing pension-related decisions and actions.

This WorkPackage1 investigates (i) individual stakeholders’ motivations for sustainable change, (ii) their perceptions about each other, and (iii) the origins and consequences of these perceptions to clarify drivers of and barriers in sustainability decisions. Over the course of this WP1’s duration, it will provide key input for WP2 (eliciting pension participants’ sustainability preferences) and WP3 (communication about sustainable investments).

Key research questions

  1. What characterizes the sustainability preferences of individuals within the three key groups of stakeholders (pension providers, pension participants, and companies) and where do these come from (e.g., values, beliefs)?
  2. What perceptions and ideas do individual stakeholders have about their roles and responsibilities, and where do these perceptions originate from (e.g., efficacy beliefs, professional responsibilities)?
  3. What perceptions and ideas do individual stakeholders have about each other’s preferences, roles and responsibilities, and where do these perceptions come from?
  4. How do these individual and perceived preferences, roles and responsibilities affect individual stakeholders’ pension-related decisions and actions, particularly in the context of the sustainability transition?