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 02, 2017
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

Latest News

Inheritance conflict is the rule, not the exception, Wells Fargo finds
Inheritance conflict is the rule, not the exception, Wells Fargo finds

New research exposes a wide gap in how affluent parents and their adult children understand and prepare for the transfer of family wealth.

Private equity leads public pension returns for 14th straight year
Private equity leads public pension returns for 14th straight year

A new AIC report finds a 13.2% median annualized return over 10 years, outpacing public equities, real estate, and fixed income.

Medicare gaps leave retirees dangerously exposed to health care costs
Medicare gaps leave retirees dangerously exposed to health care costs

Most Americans entering retirement lack a realistic picture of what health care will actually cost them and advisors may be their last line of defense.

Taxable accounts surpass retirement savings as US households diversify portfolios
Taxable accounts surpass retirement savings as US households diversify portfolios

New H&W data reveals $102.4 trillion in household investable assets, with taxable accounts outpacing retirement savings growth.

What a former RIA founder wants advisors to know about AI
What a former RIA founder wants advisors to know about AI

Betterment’s Devon Klumb built and sold an RIA - now he’s telling advisors what he wished he’d known sooner.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor