Is It Possible to Create Financial Value Through Sustainability Strategies in Asset Management? The View of Occupational Pension Funds

This paper examines whether occupational pension funds (OPFs) apply a strategic and long‐term logic when assessing ESG practices in their investee firms. Using discourse analysis of semi‐structured interviews with asset managers and workers' representatives, we examine whether Spanish OPFs look beyond compliance‐driven CSR and consider the creation of social capital as a source of financial value. Our findings show that CSR is primarily interpreted as a reputational and regulatory risk‐management tool, with engagement remaining mostly defensive and influenced by standardised reporting and short‐term market pressures. Although some OPFs, particularly worker representatives, identify potential long‐term benefits in more tailored approaches, investors display no consistent belief that social capital generation improves financial returns. Nevertheless, good governance, engagement, and higher‐quality non‐financial information emerge as potential enablers of value. Focusing on a socially pressured investor group, the study offers original insights into the motivations and limitations shaping ESG decision‐making within the context of evolving European regulation.