Abstract
We investigate the implications of using different indicators to assess the sustainability performance of investment funds. In particular, we look into the environmental performance of Dutch government bond funds. We find that it does matter a lot which particular indicator is used. This suggests that funds should be very transparent and straightforward about their non-financial performance. We argue that basically they have three options. First, the industry comes up with a benchmark against which the responsibility of their investments is measured and reported by all funds. Second, the funds make very clear and transparent which particular aspects of sustainability they specifically target and how they keep score. Third, the dashboard approach where the funds report their performance on a well-defined set of indicators.
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Scholtens, B. The Environmental Performance of Dutch Government Bond Funds. J Bus Ethics 92 (Suppl 1), 117–130 (2010). https://doi.org/10.1007/s10551-010-0637-4
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DOI: https://doi.org/10.1007/s10551-010-0637-4