Deloitte Survey Finds 8 in 10 Investors Have ESG Guidelines
New research has found that most investors have established ESG investment policies in the last couple of years in a bid to capitalize on opportunities and minimize sustainability-related risks. For the research, the Fletcher school at Tufts University and Deloitte conducted a survey of more than 1,000 asset managers, asset owners and investment advisers, including heads of strategy, CIOs, CEOs and other senior executives across regions in Asia, North America and Europe.
Once this was done, interviews with sustainability and investment leaders were carried out between January to December last year. The researchers observed considerable growth in the share of investors who had put in place sustainable investment policies, noting that almost 80% of investors had such policies in place. Five years ago, this figure stood at 20%.
The researchers also found that only about 1% of almost all other investors had no plans for ESG investing policies. In addition, the survey determined that investors in America were more likely to have sustainable investment policies in comparison to their peers globally. In the last five years, the survey found that the share of professional investors in America who had ESG investing policies shot up to 83% from 27%. Investors in Europe who reported that they had ESG investing policies added up to 75%.
The survey also asked investors to list the top drivers for integrating sustainability into decision-making processes. The most common reasons included regulatory requirements, to enhance finance performance, and stakeholder pressure or influence. The researchers observed that investors in the United States were more likely to mention talent attraction and retention as a key driver.
In addition to this, the survey determined that while more than 83% of investors reported either occasionally or regularly using sustainability data in their investment analysis, investors who were interviewed admitted to not believing that ESG factors were effectively integrated into equity prices.
Chris Ruggeri, Deloitte’s Risk & Financial Advisory principal and sustainability, climate and equity leader, stated that with various factors driving the movement toward integrating ESG and sustainability into investment decision-making, it was important that company leaders and their boards take actions to improve investor trust levels and confidence in investments.
The survey also evaluated important barriers that prevent the ability of organizations to implement sustainable investing. Common issues cited included incomparability or inconsistency of data on ESG ratings and vagueness about how ESG data could be integrated.
Michael Bondar, a Deloitte Risk & Financial Advisory principal and global enterprise trust leader, stated that there was significant room for improvement in how organizations measured, reported on and validated sustainability data to earn their investors’ trust. Bondar noted that more dependability and consistency was needed because this would improve stakeholder confidence.
It is noteworthy that fossil fuel enterprises such as Prospera Energy Inc. (TSX.V: PEI) (OTC: GXRFF) (FRA: OF6B) are spearheading the implementation of ESG standards in their operations. This highlights a growing shift indicating that even industries deeply entrenched in fossil fuels can be proactive in limiting the effects of their operations upon the climate.
NOTE TO INVESTORS: The latest news and updates relating to Prospera Energy Inc. (TSX.V: PEI) (OTC: GXRFF) (FRA: OF6B) are available in the company’s newsroom at https://ibn.fm/GXRFF
Please see full terms of use and disclaimers on the ESGWireNews website applicable to all content provided by ESG, wherever published or re-published: https://www.ESGWireNews.com/Disclaimer
New research has found that most investors have established ESG investment policies in the last couple of years in a bid to capitalize on opportunities and minimize sustainability-related risks. For the research, the Fletcher school at Tufts University and Deloitte conducted a survey of more than 1,000 asset managers, asset owners and investment advisers, including heads of strategy, CIOs, CEOs and other senior executives across regions in Asia, North America and Europe.
Once this was done, interviews with sustainability and investment leaders were carried out between January to December last year. The researchers observed considerable growth in the share of investors who had put in place sustainable investment policies, noting that almost 80% of investors had such policies in place. Five years ago, this figure stood at 20%.
The researchers also found that only about 1% of almost all other investors had no plans for ESG investing policies. In addition, the survey determined that investors in America were more likely to have sustainable investment policies in comparison to their peers globally. In the last five years, the survey found that the share of professional investors in America who had ESG investing policies shot up to 83% from 27%. Investors in Europe who reported that they had ESG investing policies added up to 75%.
The survey also asked investors to list the top drivers for integrating sustainability into decision-making processes. The most common reasons included regulatory requirements, to enhance finance performance, and stakeholder pressure or influence. The researchers observed that investors in the United States were more likely to mention talent attraction and retention as a key driver.
In addition to this, the survey determined that while more than 83% of investors reported either occasionally or regularly using sustainability data in their investment analysis, investors who were interviewed admitted to not believing that ESG factors were effectively integrated into equity prices.
Chris Ruggeri, Deloitte’s Risk & Financial Advisory principal and sustainability, climate and equity leader, stated that with various factors driving the movement toward integrating ESG and sustainability into investment decision-making, it was important that company leaders and their boards take actions to improve investor trust levels and confidence in investments.
The survey also evaluated important barriers that prevent the ability of organizations to implement sustainable investing. Common issues cited included incomparability or inconsistency of data on ESG ratings and vagueness about how ESG data could be integrated.
Michael Bondar, a Deloitte Risk & Financial Advisory principal and global enterprise trust leader, stated that there was significant room for improvement in how organizations measured, reported on and validated sustainability data to earn their investors’ trust. Bondar noted that more dependability and consistency was needed because this would improve stakeholder confidence.
It is noteworthy that fossil fuel enterprises such as Prospera Energy Inc. (TSX.V: PEI) (OTC: GXRFF) (FRA: OF6B) are spearheading the implementation of ESG standards in their operations. This highlights a growing shift indicating that even industries deeply entrenched in fossil fuels can be proactive in limiting the effects of their operations upon the climate.
NOTE TO INVESTORS: The latest news and updates relating to Prospera Energy Inc. (TSX.V: PEI) (OTC: GXRFF) (FRA: OF6B) are available in the company’s newsroom at https://ibn.fm/GXRFF
Please see full terms of use and disclaimers on the ESGWireNews website applicable to all content provided by ESG, wherever published or re-published: https://www.ESGWireNews.com/Disclaimer
