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All investment funds will be ESG in five years

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  • 03 Feb 2021
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All investment funds will be ESG in five years – Says survey of 200 professional fund buyers

The survey of 200 professional fund buyers in the UK, North America, Europe and Asia also shows that momentum towards ESG has accelerated since the pandemic, with 60% of global professional investors increasing their focus on ESG in the wake of Covid-19. ESG has proved to be most popular in the UK where 81% of respondents said they had raised their commitment generally. Meanwhile, some 42% of fund investors said they had increased their ESG focus as a direct result of the pandemic. A key factor driving popularity of ESG is the belief that suitable investing can deliver improved performance. Half (50%) of respondents said ESG funds tend to outperform their non-ESG counterparts, a figure which rises to 60% in Europe and 65% in the UK. However, only 31% of North American respondents share this conviction. "The pandemic has helped reset humanity's moral compass and encouraged people to favour investments aligned with their beliefs and values," said Andrew Inwood, founder and principal of CoreData. "Furthermore, there is a growing body of evidence indicating that ESG can help enhance performance and improve risk management. All of which means the ESG story has a long way to run.

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Investment Week