The study, which polled 85 pension fund managers and advisers from across Asia, Europe, the Middle East, North America and South America, found that two-in-three respondents integrated environmental, social and governance (ESG), or socially-responsible investment (SRI), factors into their process.
Of this group, almost half said ESG and SRI had become more important during the previous six months. Participants were upbeat that ethical investment would bring higher returns over the next five years, but most (58%) said such considerations came from “a sense of personal responsibility”.
Just over half stated that ESG and SRI were enshrined in company policy, while pension funds and charities were viewed as the organisations most likely to adopt responsible investment practices.
“In recent years there has been a shift within the industry towards more responsible investment products,” wrote Hendrik-Jan Boer, a senior portfolio manager at ING IM. “This research underlines the importance – both professionally and personally – of ESG factors.
“With three-quarters of investors believing that the sector is important for the future of the industry, we expect the demand for socially responsible investments to grow further in the coming years and to become even more commonplace in investors’ portfolios.”
