The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Socially responsible investing: Nonbelievers need to stick to data

Investing in a sustainable matter does work – just look at the numbers.

What will it take to convince large institutional investors to invest responsibly or sustainably? 

In October, a survey by Schroders of 500 pension funds, endowments, foundations and sovereign wealth funds revealed 20% of them checked the box for: ‘I do not believe in sustainable investments.’ That went up to 29% among Latin American investors. 

What exactly do they not believe? That sustainable investments exist? Because about $22.89 trillion in assets were being professionally managed under responsible investment strategies in 2016, according to the latest survey from the Global Sustainable Investment Alliance.

Or are 20% of asset owners saying they do not believe in investing sustainably because they do not care about people or the environment? 

That seems unlikely. 

So, one is left to assume that this 20% just doesn’t believe investing sustainably has a monetary benefit. Indeed, 44% of the investors surveyed by Schroders said they had performance concerns. 

Positive association

But where are they getting their information? There are many empirical studies that show a positive link between performance and environmental, social and governance (ESG) factors. In 2015, for example, Deutsche Asset Management and the University of Hamburg looked at 2,200 studies since 1970, the majority of which showed a positive association between ESG factors and corporate financial performance. 

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree