City Research Online

Abstract

We conduct a multidisciplinary review of how sustainable investing impacts the environment and society. Our review starts from the insight that shareholders can create impact not only through (1) portfolio screening and (2) shareholder engagement (two impact strategies most used by mainstream shareholders) but also through (3) field building (an impact strategy most used by shareholders at the periphery of the financial sector). Based on this framework of three impact strategies, we integrate insights from four disciplines (management, finance, sociology, and ethics/sustainability) to reconstruct how each impact strategy influences corporate sustainability. We identify 15 impact mechanisms through which the impact strategies produce three types of impact: portfolio screening and shareholder engagement mostly create direct impact on companies, while field building creates indirect impact via other shareholders and indirect impact via the institutional context. Our review suggests that shareholder impact emerges gradually as different types of shareholders build on each other's efforts, which we use to outline a research agenda on shareholder impact as a distributed process.

Publication Type:	Article
Additional Information:	© 2023 The Authors. Journal of Management Studies published by Society for the Advancement of Management Studies and John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Publisher Keywords:	ESG, socially responsible investing, sustainable investing, shareholder engagement, portfolio screening, impact
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management H Social Sciences > HG Finance
Departments:	Bayes Business School > Management
SWORD Depositor:	Symplectic Administrator

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