Extensive research on sustainable investing has shown that investor sustainability preferences can affect cost of capital and that investor engagement, particularly collective engagement, can change corporate behaviour on sustainability.
On the other hand, this same research suggests that the scale of impact of sustainable investing falls short of what is required to address climate and biodiversity externalities.
The aim of this project is to facilitate ongoing engagement between academics and practitioners to develop a shared understanding of the opportunities and limits of sustainable investing.
As part of this project, we supported the European Corporate Governance Institute blog and interview series Does Sustainable Investing Work? and the ECGI Sustainable Investing Podcast, which examines in what circumstances sustainable investing influences real-world outcomes through discussions with practitioners and academics.
These themes were developed at our flagship academic conference, the 3rd Sir Oliver Hart Conference on Sustainable Investing, held on 5 December 2025 at LSE, focused on understanding what works, and what does not, in sustainable investing. The conference hosted presentations by leading academics and practitioners who examined channels such as cost of capital, direct engagement, and the political economy of sustainable finance.
This research project is funded by the Global School of Sustainability.
For more information contact Tom Gosling.
