Environmental, social, governance investing and the preservation of retirement savings in south africa
Date
2023
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Witswatersrand, Johannesburg
Abstract
One of the big problems facing retirement funds in South Africa is premature withdrawal of retirement savings by members, also known as lack of
preservation and there is a need to understand the factors driving this phenomenon. This study aimed to investigate if and how ESG investing by retirement funds featured in member decision-making on whether to preserve their retirement savings. The study was designed as a qualitative case study and utilised semi- structured interviews to collect data. The study utilised two state-related retirement funds that are regulated under the Pension Funds Act as a case
study. The members of these funds and a few key informants were interviewed, and the interview data was analysed utilising thematic analysis on a software system called Delve. The data was analysed and discussed utilising the prospect theory. The study found that while members generally had very low knowledge about retirement fund investments and ESG, they had largely positive attitudes towards various issues that fall under ESG. However, there was no evidence
that ESG was a direct factor in their decision-making. Notwithstanding this, there was evidence that ESG could indirectly feature in this regard, insofar as
various ESG issues are perceived by members to affect the security of their retirement savings, investment returns on their retirement savings and their
sense of ethics
Description
A research report submitted to the Wits Graduate School of Governance, Faculty of Commerce, Law and Management, University of the Witwatersrand, in 50% fulfilment of the requirements for the degree of Master of Management (in the field of Governance and Management)
Keywords
ENVIRONMENTAL, SOCIAL, GOVERNANCE INVESTING, PRESERVATION OF RETIREMENT SAVINGS, SOUTH AFRICA, UCTD