10 years on from the collapse of Lehman Brothers that triggered the global financial crisis, and what started as a fringe movement is moving increasingly towards the center stage.
More than ever, asset managers and owners are considering Environmental, Social and Governance factors (ESG) in the investment process.
According to a survey by New Week Vantage – Going Mainstream the future of ESG investing. The Paris Agreement and the United Nations Sustainable Development Goals will continue to drive the investment agenda.
65% of surveyed investors singled out topics related to global warming as their first priority: as well ramping up investments in renewables, over half of investors expect to have divested from fossil fuels by 2030.
97% of asset owners and managers said they expect that ESG information is going to become more relevant to the investment process in the years to 2030.
Over 60% also have an explicit policy on the SDGs, with health and diversity among the key themes, yet many express concern about how to achieve them. Aside from their obvious complexity, a challenge is their focus on developing markets still outside of the comfort zone of many institutional investors.
More than three-quarters (78%) of survey respondents with similar trends across regions – agreed that their organization should be making investments that aim to create positive value for society if they reduce long-term financial risks.
A slightly smaller majority (71%) agreed that they should make such investments if they increase long-term but not necessarily short-term returns.
Source :New Week Vantage – Going Mainstream the future of ESG investing