As world leaders gather in Scotland for COP26, a majority (60%) of investors around the world reject the idea that companies are responsible only for creating value for shareholders.
Natixis Investment Managers surveyed individual investors in 24 countries and found that investors also expect accountability from companies for their impact on the environment and society, and they want to see more action from policymakers and the private sector, including fund managers.
“North American investors in ESG now lead those from Europe and Asia in ESG adoption.”
Natixis IM
The Natixis IM survey reports:
- 77% of respondents believe it’s their responsibility as investors to hold companies accountable for their impact on society including climate change and inequality
- 82% of investors say that companies have a responsibility to address social issues, even more than those who say it’s the government’s responsibility
- 45% consider it important to invest in companies that are transitioning to more sustainable business models
- 67% would be more inclined to invest in funds that demonstrate a better carbon footprint, a key factor in reducing climate change
With total assets worldwide in environmental, social and governance (ESG) investment strategies reaching $1.6 trillion in 2020, Natixis IM found signs that the ESG momentum continues to build. The survey found that 21% of individual investors currently employ ESG investing strategies.
Of those, 24% invested in ESG for the first time in just the past year while 33% of those who were previously invested added to their existing holdings. Nearly half of those not yet invested in ESG say they are interested in learning more.
World is catching up
And while Europe has led the way in early ESG adoption, the world is catching up:
- North American investors in ESG now lead those from Europe and Asia in ESG adoption
- Within North America, U.S. investors (32%) dominate, compared to only 16% of Canadians who own ESG investments
- Current ESG investment is lowest in Latin American countries, but that is likely to change over time as the region has many investors who say they are interested in ESG even if they have not yet made an investment
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
