Investors worldwide support ESG investing, but still want performance

Global survey by Natixis polled 12,375 individual investors, financial advisers and institutional investors

May 16, 2019 @ 6:58 am

By InvestmentNews

Worldwide investor demand for environmental, social and governance (ESG) investing is strong, according to a survey conducted by Natixis Investment Management, with 76% of individual investors globally and 71% of U.S. investors saying it is important to have the ability to invest according to personal values and ethical requirements.

(More: Giving advisers ESG insight so they can grow)

The survey, which polled 12,375 individual investors, financial advisers and institutions around the world, found that 60% of investors globally and 48% in the U.S., say they actively seek out investment opportunities that align with their personal values. At the same time, 50% of investors around the world and 46% of U.S. investors say that they align their investments with their personal values as much as possible but not at the cost of lower investment returns.

On environmental issues, U.S. investors said they are concerned most about pollution (52%); waste and recycling (46%); and climate change (41%). On social issues, the top three concerns are human rights (59%); employee health and safety (51%); and labor practices (34%). On corporate governance, topping the list were bribery and corruption (57%), business ethics (42%) and transparency (42%).

Among institutional investors, 61% of those surveyed say they currently implement ESG strategies within their portfolios. In addition, 56% believe there is alpha to be found in ESG, 55% plan to increase their ESG allocation in 2019, and 65% believe incorporating ESG will be a standard practice for all managers within five years. More than half — 56% — believe ESG strategies can mitigate risk.

Despite the large number of investors who think it is important to align their investments with their values, only 28% of U.S. financial advisers said their clients asked about sustainable investments in the past 12 months, and just 32% said that clients are asking for ESG more now than they were a year ago.

(More:ESG options scarce in 401(k) plans)

Only 17% of financial advisers in the US who responded to the survey said they feel a need to improve their ability to understand and explain ESG to their clients.

0
Comments

What do you think?

View comments

Most watched

Events

Finding innovation in your firm

Adam Holt of AssetMap explains how advisers understand they need to grow, but great innovation may be lurking right under your nose.

Events

Finding your edge from Tony Robbins

Guru Tony Robbins has helped a lot of people, but armed with his psychology Financial Advisor Josh Nelson has helped his practice soar.

Latest news & opinion

Redtail CRM data breach exposes personal client data

The information exposed includes names, addresses, dates of birth and Social Security numbers.

This strategy can double your estate-tax exemption

'Portability' allows a surviving spouse to tack the decedent's exemption on to his or her own. Despite the higher threshold for paying estate taxes in the 2017 tax law, experts recommend filing for the benefit.

Couple in Morgan Stanley advisory account wins $519,000 arb case over unsuitable investments

Plaintiff's lawyer says junk bonds, futures contracts and derivatives were inappropriate for his clients.

The growth of factor-based investing

Advisers are making decisions about clients' portfolios by using the same characteristics that govern factor-based ETFs.

Finra makes its list to target hundreds of rogue individuals

The regulator sees patterns in the behavior and disclosures of high-risk brokers.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print