Sustainability, Prosperity, and Provision
Project Description
As part of a joint research project between the Chair of Sustainable Finance and Investments at the University of Liechtenstein and the prosperity company in Liechtenstein, the potential for integrating impact investing components into equity-based pension provision products was investigated. The project focused on the conceptual framework, regulatory context, and an empirical analysis of sustainable funds (SFDR Articles 8 and 9).
Building on the outcomes of this project, the next phase of research aims to develop a scientific publication that deepens and expands on the key questions identified.
The planned focus areas of this follow-up research include:
This extended research aims to contribute to the academic foundation of impact investing in the context of private pension provision, while also offering practical insights for financial product development and regulatory frameworks.
Building on the outcomes of this project, the next phase of research aims to develop a scientific publication that deepens and expands on the key questions identified.
The planned focus areas of this follow-up research include:
- A nuanced analysis of the mechanisms through which sustainable funds generate impact, particularly by comparing ESG metrics and EU taxonomy indicators;
- The development and empirical validation of an evaluation model for identifying high-impact funds, taking into account risk, return, and sustainability dimensions;
- An in-depth examination of regulatory uncertainties and their implications for the classification, credibility, and marketing of impact investing products;
- The simulation and assessment of investor portfolios with varying sustainability prefer-ences under different market scenarios.
This extended research aims to contribute to the academic foundation of impact investing in the context of private pension provision, while also offering practical insights for financial product development and regulatory frameworks.
Relevance to Liechtenstein
This project contributes to positioning Liechtenstein as an innovative financial hub for sustainable investments. Its findings support the development of credible and regulation-aligned impact investing solutions within the pension provision sector - a field of growing social and economic importance.
By empirically evaluating sustainable funds in terms of cost, risk, and actual impact, the research delivers actionable insights for banks, insurers, and asset managers in Liechtenstein. It also addresses key challenges such as greenwashing risks and regulatory uncertainty surrounding SFDR fund classifications.
The project strengthens the University of Liechtenstein's academic leadership in sustainable finance and promotes knowledge exchange with local financial institutions. It thus directly supports the long-term, sustainable development of Liechtenstein's financial sector in alignment with the UN Sustainable Development Goals.
By empirically evaluating sustainable funds in terms of cost, risk, and actual impact, the research delivers actionable insights for banks, insurers, and asset managers in Liechtenstein. It also addresses key challenges such as greenwashing risks and regulatory uncertainty surrounding SFDR fund classifications.
The project strengthens the University of Liechtenstein's academic leadership in sustainable finance and promotes knowledge exchange with local financial institutions. It thus directly supports the long-term, sustainable development of Liechtenstein's financial sector in alignment with the UN Sustainable Development Goals.
Scientific, Economic and Societal Impact
The project is closely aligned with the University of Liechtenstein's research strategy, particularly its focus on sustainability, finance, and innovation. The project contributes to a deeper understanding of how sustainable finance can be practically implemented in long-term savings and pension systems.
By addressing current challenges in regulatory compliance, transparency, and fund evaluation-especially in the context of SFDR Article 8 and 9 funds-the research advances the university's ambition to produce socially relevant and internationally visible research in the field of Sustainable Finance. The project's applied nature and close cooperation with an industry partner (the prosperity company) also exemplify the university's commitment to transfer-oriented research and regional impact.
Furthermore, the project supports the university's goal of strengthening Liechtenstein as a center for responsible financial innovation and contributes to educating future finance professionals with a deep understanding of sustainability-related investment principles. The planned scientific publication and potential development of a portfolio tool will further cement the university's role as a thought leader in the evolving field of impact investing.
By addressing current challenges in regulatory compliance, transparency, and fund evaluation-especially in the context of SFDR Article 8 and 9 funds-the research advances the university's ambition to produce socially relevant and internationally visible research in the field of Sustainable Finance. The project's applied nature and close cooperation with an industry partner (the prosperity company) also exemplify the university's commitment to transfer-oriented research and regional impact.
Furthermore, the project supports the university's goal of strengthening Liechtenstein as a center for responsible financial innovation and contributes to educating future finance professionals with a deep understanding of sustainability-related investment principles. The planned scientific publication and potential development of a portfolio tool will further cement the university's role as a thought leader in the evolving field of impact investing.
