Which investors are most attracted to ESG investments and why?

Growth in the environmental, social and governance niche is tremendous. New research illuminates the causes and why advisers should care

Dec 2, 2017 @ 6:00 am

By Ellie Zhu

Increasingly, Americans are seeking to link their values to their investment portfolios. But not all advisers feel equipped to dole out advice on responsible investing.

See what motivates advisers who back environmental, social and governance investing, and what stops those who do not.

Unless otherwise noted, all data come from a 2017 survey of 450 financial advisers from InvestmentNews Research's “The Rise of ESG Investing” report.

Two decades of esg growth
Investment funds that incorporate ESG factors
Source: U.S. SIF Foundation's “U.S. Sustainable, Responsbile and Impact Investing Trends,” 2016 report.
Client Use and Interest in ESG Investments
Advisers report
32%
net increase in clients' interest in ESG investing over the last year.
22%
of advisers who do not recommend ESG strategies saw an increase in client interest in ESG over the last year.
18%
of clients have ESG investments in their portfolios among advisers who utilize such investments.
Who makes investing decisions based on social responsibility factors?
Source: Spectrem Group
Causes clients care most about
Source: Eaton Vance's Q3 2017 Advisor Top-of-Mind Index survey of 1,005 advisers
Do you take ESG factors into consideration while building client portfolios?
Benefits of gaining more ESG expertise
Adviser motivation for using ESG options
Why advisers don't use ESG investments

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