Responsible Investing and Stock Allocation

We analyze the portfolio choices of approximately 913,000 active participants in
employee saving plans in France. Looking at the cross-section of equity exposure, we
find that the inclusion of responsible equity options in the menu of available funds
is associated with a 2.1% higher equity allocation by plan participants. Compared
to an average equity asset allocation of 12.1%, it represents a material increase (17%
in relative terms). Difference-in-differences analyses confirm that the introduction
of a responsible equity option to a saving plan is followed by an increase of 7.2% in
participants' appetite for stocks, contrary to what happens with conventional equity
funds.