ESG Investor Report
The Association of Investment Companies (AIC) releases an ESG Investor Report, which aims to track the development trends of ESG investing.
This survey involved a total of 407 individual investors, and AIC conducted in-depth interviews with 20 of them. This is also the third year that AIC has conducted the ESG Attitudes Tracker.
Related Post: Morningstar Releases Asset Owner ESG Survey Report
Investors’ Perspective on ESG
Compared with the previous two years, investors’ enthusiasm for ESG has declined this year (65% in 2021, 60% in 2022, and 53% in 2023). Analyzing from the three aspects of environment, society and governance, the importance of each aspect has declined. Currently, the proportion of investors who recognize the importance of these factors are 48%, 32% and 37% respectively.
In addition to those in favor of ESG investing, 47% of respondents currently do not consider ESG factors in their investments. Investors who hold this view place higher priority on performance factors (56%) and do not trust asset managers’ ESG investment strategies (51%). 17% said they had never considered ESG investing.
Investor’s Concerns about ESG
Regarding the impact of ESG on investment performance, 14% of respondents believe that ESG can improve performance, and 24% believe that ESG brings negative impacts to company performance. Regarding the impact of ESG on investment risks, 14% of respondents believe that ESG can reduce investment risks, and 30% believe that adopting ESG factors will increase investment risks.
In addition, investors’ concerns about greenwashing also affect their views on ESG. Investors hope that regulators can develop accurate information disclosure guidelines, such as investment product labeling systems, so that they can get the right guidance in the process of finding products. Some investors also prefer to actively participate in environmental and social activities after obtaining investment returns, rather than choosing asset management companies as trustees.
AIC believes that in addition to information disclosure by asset management companies, standardized verification from third parties and regulation of ESG data products will also help investors regain confidence in ESG investing.
Reference:
