Changing priorities in investor decision making

Principal Investigator:

Cath Jackson

Co-Investigator:

Alison Orr (University of Glasgow)

Project:

In 2006 the RICS Education Trust funded a study by Cath Jackson and Alison Orr to explore the ways in which investment decision-makers view comparative property choices. The study recognised that asset selection is undertaken in a complex environment, with multiple trade-offs necessary due to the different investment attributes represented in each property. The results indicated that, at that time, investors’ concerns about the sustainability of property were low, ranked as 7th in importance out of 8 attributes. This raised concerns over the degree to which actors within the industry were embracing the sustainability agenda.

This current project seeks to revisit these results, 10 years on, to explore whether priorities/behaviour have changed. The original methods will be replicated – a simulation of complex stock selection choices (using choice-based-conjoint analysis) to reveal investors’ purchasing-decision behaviour – with the results subsequently further explored through focus groups to reveal the reasons for their simulated investment choices against their sustainability objectives.

This timely study, seeks to investigate and reveal the degree of accord between what investment decision-makers explicitly state their sustainability strategies to be and how they are implemented, against what their behaviour reveals about how purchasing decisions are made and the implicit judgements within.

Funder:

RICS Education Trust