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Decoding Pension Funds: Sustainability Indicators for Annual Report Analysis

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  • Leticia Martins Medeiros

    (Faculty of Economic Sciences (FCE), Federal University of Rio Grande do Sul (UFRGS), Av. João Pessoa, 52, Porto Alegre 90046-901, RS, Brazil)

  • Clea Beatriz Macagnan

    (Postgraduate Program in Accounting Sciences (PPGCC), Federal University of Paraíba (UFPB), Campus I, Cidade Universitária, João Pessoa 58051-900, PB, Brazil)

  • Rosane Maria Seibert

    (Strategic Organization Management Program, University Regional Integrada do Alto Uruguai e das Missões (URI), Rua Universidade das Missões, 464, Santo Ângelo 98802-470, RS, Brazil)

Abstract

Pension funds’ growth highlights the need to emphasize fiduciary duty and investment sustainability, considering the current and future participants’ interests (priority stakeholders) and systemic risk reduction (environmental, social, economic, and governance effects). Therefore, this study builds sustainability indicators based on the interests of pension fund stakeholders. The methodology comprised five stages: the first consisted of analyzing Annual Information Reports to create a preliminary list of indicators; the second involved examining specific legislation on pension fund disclosure and identifying mandatory information; the third involved submitting the updated list to experts; and the fourth involved submitting it to priority stakeholders for evaluation and validation. After its updates, the indicators list was evaluated using Principal Component Analysis. All these stages allowed for the triangulation of information and the creation of a final list containing 48 sustainability indicators for pension funds, with information requested by priority stakeholders. This allows regulators to adjust disclosure rules, including those required by stakeholders and good governance practices. It also allows pension funds to identify the indicators required by stakeholders, reducing information asymmetry. The adoption of the list of indicators would promote trust, legitimacy, and sustainability for pension funds.

Suggested Citation

  • Leticia Martins Medeiros & Clea Beatriz Macagnan & Rosane Maria Seibert, 2025. "Decoding Pension Funds: Sustainability Indicators for Annual Report Analysis," JRFM, MDPI, vol. 18(4), pages 1-19, March.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:4:p:174-:d:1619940
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