Who cares about socially responsible retirement plans?
Tuesday, September 29, 2015
As people become more interested in socially responsible investing, it’s having an impact—not just on social causes, but on how employees feel about their employers.
That’s according to new research from Calvert Investments, which offers mutual funds that invest in socially and environmentally responsible companies. The study found that plan participants whose workplace retirement plans offer SRI options are “significantly more likely to express high satisfaction with their plan.”
While 45 percent of participants are “satisfied” and 50 percent are “highly satisfied” with the plan their employer provides, that percentage rises if SRI is a factor. What are known as “sustainable, responsible and impact” investing assets domiciled in the U.S. have soared, increasing by 76 percent.
Sixty-six percent of participants in plans offering SRI as an option said they were “highly satisfied,” compared with just 44 percent of those whose employers didn’t provide SRI in the plan. In addition, 78 percent of participants said they wished they had a greater understanding of the companies they invest in within their plan.