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Titled “Opportunities for Sustainable and Responsible Investing in US Defined Contribution Plans,” the report finds 14% of 421 DC plan sponsors responding to the survey already offer one or more SRI options, while an additional 13% of survey respondents either are discussing adding an SRI option or intend to do so in the next two to three years. The US SIF Foundation/Mercer report also finds that more than four out of five plan sponsor respondents (84%) — both those that currently offer SRI options and those that do not — predict that demand for SRI options in retirement plans will increase or remain steady over the next five years. US SIF CEO Lisa Woll said in a press release, “Today, more and more Americans rely on defined contribution (DC) pension plans for their retirement, and it is clear that SRI options are going to be a bigger part of that picture. Investment flows to DC plans tend to be steady during market downturns, making DC plans an important retirement tool for many workers. The retirement industry regularly analyzes the overall investment composition of DC plan assets; however, plan sponsors and participants have had little concrete information about the availability of sustainable and responsible investing options. This year, the US SIF Foundation determined a new survey was needed to fill in that information gap, particularly given the significant growth in SRI, tumult in the financial markets and changes in the DC retirement industry over the last five years.” Mercer Principal and U.S. Head of Responsible Investment Craig Metrick said, “Given the large number of plan sponsor respondents who admit to little or no knowledge of SRI products and indices, education is clearly a critical and a significant opportunity. Thus, better awareness of the variety of SRI funds available and the performance and risk characteristics of those funds could help in expanding the SRI market share in DC plans. In addition, since plan sponsors indicate that demand from participants is the leading driver in their decisions as to whether to add SRI options to their plans, ascertaining whether participants are interested in SRI options is also important."
Titled “Opportunities for Sustainable and Responsible Investing in US Defined Contribution Plans,” the report finds 14% of 421 DC plan sponsors responding to the survey already offer one or more SRI options, while an additional 13% of survey respondents either are discussing adding an SRI option or intend to do so in the next two to three years.
The US SIF Foundation/Mercer report also finds that more than four out of five plan sponsor respondents (84%) — both those that currently offer SRI options and those that do not — predict that demand for SRI options in retirement plans will increase or remain steady over the next five years.
US SIF CEO Lisa Woll said in a press release, “Today, more and more Americans rely on defined contribution (DC) pension plans for their retirement, and it is clear that SRI options are going to be a bigger part of that picture. Investment flows to DC plans tend to be steady during market downturns, making DC plans an important retirement tool for many workers. The retirement industry regularly analyzes the overall investment composition of DC plan assets; however, plan sponsors and participants have had little concrete information about the availability of sustainable and responsible investing options. This year, the US SIF Foundation determined a new survey was needed to fill in that information gap, particularly given the significant growth in SRI, tumult in the financial markets and changes in the DC retirement industry over the last five years.”
Mercer Principal and U.S. Head of Responsible Investment Craig Metrick said, “Given the large number of plan sponsor respondents who admit to little or no knowledge of SRI products and indices, education is clearly a critical and a significant opportunity. Thus, better awareness of the variety of SRI funds available and the performance and risk characteristics of those funds could help in expanding the SRI market share in DC plans. In addition, since plan sponsors indicate that demand from participants is the leading driver in their decisions as to whether to add SRI options to their plans, ascertaining whether participants are interested in SRI options is also important."
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