« Back to News list

Nudges for Good

Monday, Oct 9, 2017

The CAPROCK Group's Matthew Weatherley-White was in illustrious company Monday when ImpactAlpha included his "Opt Out" proposal in a segment that articulates a growing trend — one that is attracting global support.

Nudges for good.
“Nudges” are small changes designed to have a big impact on individual behavior. Richard H. Thaler, a behavioral economist won this year’s Nobel Prize for his work on the idea. Automatically enrolling employees in retirement programs, for example, instead of asking them to opt in, leads to more savings. Nudges have been adopted to make all sorts of public policies more effective, from increasing car registration to getting kids to choose healthy school lunches. Impact investors have taken note. The Gates Foundation has “nudged” biotechnology startups to tackle neglected diseases in the developing world. Don’t ask investors to “opt in” to environmental, social and governance reporting, Matthew Weatherley-White, a managing director at Caprock Group, suggested at SOCAP last year. Instead, they should have to opt out.
“If we made ESG the opt-out setting, the system would change fundamentally and irrevocably,” he said.

Read the rest of the Brief, including Thaler's "three principles for the use of nudges," HERE. 5 minute read.

Content produced and published by ImpactAlpha










bcorp
Copyright © 2016 The CAPROCK Group, all rights reserved. The CAPROCK Group is an SEC Registered Investment Adviser. This communication is not a solicitation or offer to sell investment advisory services except in states where we are registered or where an exemption or exclusion from such registration exists. All written content is for informational purposes only and may not constitute a complete description of available investment services. Investment in securities involves the risk of loss. Past performance is no guarantee of future returns. Cappadocia Hot Air Balloon