Turns out it pays to be consciously-minded! In a survey of 650 institutions from around the world, ‘Schroders Institutional Investor Study 2018’ found that institutional investors who focus more on sustainability appear to be more confident in achieving their return expectations than those who do not.
However, not everyone is on board with sustainability, seeing as three quarters of investors (77%) admitted that they found investing sustainably at least somewhat challenging, in part due to performance concerns and a perceived lack of transparency.
BETTER FINANCE is encouraged by these findings but stresses that the finance industry should first and foremost apply ESG criteria to their own activities in particular in terms of governance and transparency (information and disclosure).
BETTER FINANCE also points to the need to measure and clearly inform individual investors about the impact of applying ESG criteria on actual long-term real performance by allowing for the comparison between the actual performance and the corresponding mainstream capital markets’ benchmarks.
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