Sustainable Investment Has Become Mainstream According To Survey

A survey by Morgan Stanley and Bloomberg found that of all the asset manager polles, two-thirds would pursue sustainable investing, with 64% believing its adoption will continue developing.

Two-thirds of asset management professionals surveyed (65%) say that they are using sustainable investing strategies to achieve competitive market-rate financial return alongside positive social and/or environmental impact. Sixty-four percent believe its adoption will continue to grow, according to a new survey published today by the Morgan Stanley Institute for Sustainable Investing and Bloomberg L.P. The new Sustainable Signals: The Asset Manager Perspective report examines the practices and perspectives of asset managers on sustainable investing and offers insights and action steps for asset managers and asset owners interested in pursuing sustainable investing strategies. The survey results indicate that this surge in sustainable investing activity has been spurred by rising investor demand and media coverage, resulting in a proliferation of new products from both specialist and mainstream asset management firms.

Sustainable investing continues to make significant inroads in the broader investment community

“Sustainable investing continues to make significant inroads in the broader investment community, led by individual and institutional investor demand for products that effectively and credibly deliver both financial and social returns,” said Audrey Choi, CEO of the Morgan Stanley Institute for Sustainable Investing. “However, as the market grows, it’s imperative we empower asset owners and asset managers with information and insights that enable them to combine the best of traditional investing practices with rigorous and material environmental, social and governance considerations.”

Sustainable Investing Trends at a Glance

• Among 402 individuals surveyed at U.S. asset management firms:
• 89% are familiar with sustainable investing
• 65% practice sustainable investing
• 64% surveyed believe its adoption will continue to grow

Yet:

• 62% say proof of financial performance by sustainable investing products would increase firm’s commitment
• 55% say the field lacks credible data to inform decision making
• 51% are confident they can explain the non-financial impacts of sustainable investing to clients

“At Bloomberg, we see broader interest in sustainable investing approaches among asset managers, who are adopting new analytical approaches and differentiating their investment products. This shift is driven by both client demand and potential benefits for manager performance, both to manage ESG risk and identify sustainability-driven opportunities,” said Curtis Ravenel, Global Head of Sustainable Business and Finance at Bloomberg LP. “As a result, managers and analysts are definitely starting to demand more transparent and actionable information to enable better investment decision-making.”

For more information, please see Sustainable Signals: The Asset Manager Perspective.