NEW Whitepaper
Sustainable Investing and ESG – Strategic Research Solutions
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Sustainable investing is an investment approach that considers environmental, social and governance (ESG) criteria in selecting and managing investments. It is now moving away from a niche status to a mainstream consideration.
Key Takeaways:
- Global sustainable investing AuM more than doubled from 2012-18 to reach USD31tn
- Nevertheless, there is significant headroom for further growth, as sustainable investing assets account for only c.30% of all professionally managed assets globally
- ESG factors are clearly a key consideration in investing, both for asset managers and asset owners
- However, there are challenges in integrating sustainability into the investment research process given that ESG research is still in its infancy
- Investors are concerned that increased focus on ESG analysis would distract asset managers from their primary duty of return maximization