ESG investing survey: investors want the best of both worlds
5月 16, 2019
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3 分鐘的閱讀時間
Investors see the best of both worlds in Environmental, Social and Governance (ESG) investing. They say it can help them align their assets with their personal values – and has the potential to produce the performance they need to help achieve their financial goals.
The good news? Most financial professionals agree. A majority say ESG investing has the potential to generate alpha – and mitigates governance and social risks, such as loss of assets due to lawsuits, social discord, or environmental harm. Our recent report looks across several of our surveys and reveals insight into what will help shape the long-term success of ESG investing.
Nearly 2/3 of institutional investors believe that ESG investing will become an industry standard within the next 5 years."
Individual investors believe that ESG factors may have the ability to drive investment performance.1 Professionals also say it has great potential to help manage risk, as lapses in corporate governance, powerful social movements, and environmental issues regularly make headlines.2,3 But uncovering that potential will require more than simply following an ESG index.
ESG investing is an active process. It takes:
1
Significant investment expertise
2
Deep analysis
3
Highly active portfolio management
The bottom line? ESG is a core investment strategy – not just a “feel-good filter.”
Why do individuals want ESG investing options?1
They say they want to make investments that are in line with their values and the things that matter most to them – but not at the cost of performance.
But many don’t think they have to compromise. For example, more than half say they think that companies that demonstrate higher integrity will outperform similar companies that do not. And three-quarters say that if a fund has a better carbon footprint, they would buy it.
Individuals vote with their wallets
Investors think like consumers, and use their purchasing power to demonstrate their preferences.
As Consumers
63%- look to buy products from companies that align with their personal values.
59%- avoid buying products from companies that conflict with their personal values.
As Investors
60%- seek out investments that align with their personal values.
56%- avoid investments that conflict with their personal values.
Professionals should talk with investors to learn which companies and industries they value – and which they don’t
Institutions are adopting ESG investing3
Sustainable investing has gained a significant foothold in the institutional world. Six in ten institutions say they incorporate ESG into their decision making and analysis. And there’s often more than one reason.
Why institutions use ESG investments3
59%- to align investment strategies with organizational values
30%- because it’s mandated by their investment policy
38%- to minimize headline risk
20%- to help generate higher risk-adjusted returns
Many organizations and large institutions have also made inroads with ESG rankings and tools that support ESG analysis.
3 ways ESG investing can gain broader consideration and acceptance
Education
Financial professionals will need to actively listen for how clients express these preferences – then match them with the ESG strategies that will help meet their goals.
Consistency
More consistent naming, definitions, standards, and reporting around ESG investing will help investors, professionals, and institutions have more meaningful conversations.
Transparency
ESG funds need to report on standard investment returns – as well as their progress against their sustainability goals.
Read the full report
Learn more about how ESG can help investors align their investments with their values – and meet their financial goals.
Methodology
The 2019 Cross-Survey ESG Report sources data from the Natixis Investment Managers Global Survey of Individual Investors, Global Survey of Institutional Investors, Global Survey of Financial Professionals and Global Survey of Professional Fund Buyers. Results from these four surveys were collected in 2018.
- Natixis Investment Managers, Global Survey of Financial Professionals conducted by CoreData Research in March 2018. Survey included 2,775 financial professionals in 16 countries.
- Natixis Investment Managers, Global Survey of Individual Investors conducted by CoreData Research, September 2018. Survey included 9,100 investors from 25 countries.
- Natixis Investment Managers, Global Survey of Institutional Investors conducted by CoreData Research in September and October 2018. Survey included 500 institutional investors in 28 countries.
- The Natixis Investment Managers Global Survey of Professional Fund Buyers was conducted by CoreData Research in October and November 2018. The survey included 200 respondents in 22 countries throughout North America, Latin America, the United Kingdom, Continental Europe and the Middle East.
1 Natixis Investment Managers, Global Survey of Individual Investors conducted by CoreData Research, September 2018. Survey included 9,100 investors from 25 countries.
2 Natixis Investment Managers, Global Survey of Financial Professionals conducted by CoreData Research in March 2018. Survey included 2,775 financial professionals in 16 countries.
3 Natixis Investment Managers, Global Survey of Institutional Investors conducted by CoreData Research in October and November 2018. Survey included 500 institutional investors in 28 countries.
Investing involves risk, including the risk of loss. Sustainable investing focuses on investments in companies that relate to certain sustainable development themes and demonstrate adherence to environmental, social and governance (ESG) practices; therefore the universe of investments may be limited and investors may not be able to take advantage of the same opportunities or market trends as investors that do not use such criteria. This could have a negative impact on an investor's overall performance depending on whether such investments are in or out of favor.
Alpha: A measure of the difference between a portfolio's actual returns and its expected performance, given its level of systematic market risk. A positive alpha indicates outperformance and negative alpha indicates underperformance relative to the portfolio's level of systematic risk.
This material is provided for informational purposes only and should not be construed as investment advice.
All investing involves risk, including the risk of loss. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
Natixis Distribution, L.P. is a limited purpose broker-dealer and the distributor of various registered investment companies for which advisory services are provided by affiliates of Natixis Investment Managers.
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