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Walk the green talk? A textual analysis of pension funds' disclosures of sustainable investing

Published online by Cambridge University Press:  12 December 2024

Rob Bauer ,
Dirk Broeders Open the ORCID record for Dirk Broeders [Opens in a new window]  and
Annick van Ool
Rob Bauer
Affiliation:
Maastricht University, Maastricht, The Netherlands
Dirk Broeders*
Affiliation:
Maastricht University, Maastricht, The Netherlands European Central Bank, Frankfurt am Main, Germany
Annick van Ool
Affiliation:
De Nederlandsche Bank, Amsterdam, The Netherlands
*
Corresponding author: Dirk Broeders; Email: [email protected]
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Abstract

We analyze the disclosures of sustainable investing by Dutch pension funds in their annual reports by introducing a novel textual analysis approach using state-of-the-art natural language processing techniques to measure the awareness and implementation of sustainable investing. We find that a pension fund's size increases both the awareness and implementation of sustainable investing. Moreover, we analyze the role of signing a sustainable investment initiative. Although signing this initiative increases the specificity of pension fund statements about sustainable investing, we do not find an effect on the implementation of sustainable investing.

Keywords

ESGnatural language processingpension fundssustainability

JEL classification

M14: Corporate Culture • Diversity • Social Responsibility Q54: Climate • Natural Disasters and Their Management • Global Warming C8: Data Collection and Data Estimation Methodology • Computer Programs G11: Portfolio Choice • Investment Decisions J32: Nonwage Labor Costs and Benefits • Retirement Plans • Private Pensions
Type
Article
Information
Journal of Pension Economics & Finance , Volume 24 , Issue 2 , April 2025 , pp. 297 - 325
Copyright
Copyright © The Author(s), 2024. Published by Cambridge University Press

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