A survey of more than 360 international investment professionals on sustainable investment has outlined how environmental, social and governance (ESG) policies are becoming increasingly fundamental for the sector.
The survey, by Thomson Reuters and the UK Sustainable Investment and Finance Association (UKSIF), assessed 179 buy-side firms and 14 brokerage firms and research houses.
Over 80% of respondents claimed that thematic reviews and ideas are the most critical ESG research services, while more than 30% of asset managers take all sustainable and responsible investment (SRI) or ESG research into account for analysis.
The results of the survey prove how sustainability is a growing trend among investors, the two organisations said.
- ESG Product Set Continues To Grow In Size & Complexity According To bfinance Market Intelligence
- Responsible investment: straining the alphabet soup
- More Effective Regulation Required To Drive ESG Advancement
- Investors Incorporate ESGs Into Long-Term Portfolios
- UK Must Ensure EU Pension Directive Is Extended To Brits Say ShareAction
Simon Howard, UKSIF chief executive, said, “Two weeks ago the Law Commission said fiduciaries ‘should take financially material factors into account’ and cited ESG elements as an example of those factors. This highlights how SRI and sustainability thinking is relevant to the mainstream. These awards showcase the financial sector’s successful integration of sustainability and ESG across the value chain, from brokers through fund managers to companies.”
The survey found L’Oréal, Eni and Carrefour to be the leaders in sustainability communication, while HSBC ranked as leading brokerage firm for integrated research on climate change.
Steve Kelly, managing director of Extel at Thomson Reuters, added, “The provision of research has become both more specialised and multi-faceted, reflecting the desire from investors for more sophisticated analyses; and ideas directly relevant to investment opportunities.
“Extel remains 100% committed to capturing market sentiment and views on this vital part of the investment community.”
UKSIF is supporting Sustainable September, Blue & Green Tomorrow’s celebration of sustainability. On September 23, different speakers will debate around the topic, “The purpose of investment is maximising financial return and nothing else” at the Royal Geographical Society in London. Tickets are available to book here.
Photo: Kenteegardin via freeimages