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TRSM Research Seminar by Dr. Deborah de Lange

Date
November 17, 2022
Time
10:00 AM EST - 11:00 AM EST
Location
Zoom
Open To
Faculty and students
Contact
mpaidi@torontomu.ca

Title: Divestment for the climate: Do and why do next generations change institutions? by Dr. Deborah de Lange (Toronto Metropolitan University) and Dr. Olaf Weber (University of Waterloo)

Abstract: Recent generations have had tremendous influence in developing and shaping our seemingly strong and immovable institutions that must change in the face of crises. How these inertial systems will change to avert disaster is a grave question, especially given the climate crisis. In general, we need to know whether and why our institutions will adapt to avoid repeating history. Institutional theory explains both institutional stability and transformation. This theory is extended by considering whether and how the motivations and interests of the next generations shape existing institutions. A quantitative study is undertaken to address the question: Do and why do next generations change financial institutions through their investment preferences? Hypotheses are developed in the context of changing investment institutions towards mainstreaming ethical investment and divesting of fossil fuels. This study also motivates theory development in the pro-environmental behaviors literature, having been extensively researched in the consumer context but not in the investment context. Using survey data from a sample of university students, results of a structural equation model show that students wanting a career related to climate change mitigation are likely to engage in institutional change. Feeling a responsibility to address an issue, such as climate change, motivates change-oriented behaviors. Ethical drivers influence youths’ investment decisions, putting pressure on the investment industry to mainstream responsible investment practices and divest of fossil fuels. Overall, understanding is developed around the generational change of institutions.

Bio: Dr. Deborah de Lange is an Associate Professor in Global Management Studies in the Ted Rogers School of Management and a recent winner of The Women in Energy Transformation series, a collaborative effort
between Pembina, Globe Series, and Women in Renewable Energy (WiRE).

Dr. Olaf Weber is a Professor at the School of Environment, Enterprise and Development holding the University of Waterloo's Research Chair in Sustainable Finance and is a Senior Fellow of The Centre for International Governance Innovation, an independent, non-partisan think tank on global governance based in Waterloo, Ontario.