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Laxman Pai, Opalesque Asia: Investors are increasing environmental, social and governance (ESG) investments in line with the UN's sustainable development goals (SDGs) framework, BNP Paribas Securities Services' ESG Global Investor Study 2019.
Over half (52 percent) of environmental, social and corporate governance (ESG) investments have seen "improved long-term returns" since 2017, revealed the French bank which carried out a survey of asset managers and owners incorporating ESG strategies.
60% of all respondents expect their ESG portfolios to outperform over the next five years, it said.
In total, over 65% of respondents aligning their investment framework with the UN SDGs, mainly by setting SDG-related revenue targets for investee companies.
Data and technology costs remain barriers to ESG integration, but investors are optimistic, with over 90% predicting more than 25% of their funds will be allocated towards ESG by 2021, said the study.
75% of asset owners and 62% of asset managers hold 25% or more of their investments in funds incorporating ESG (vs 48% and 53% in 2017).
Florence Fontan, Head of Asset Owners at BNP Paribas Securities Services, said: "ESG investment is becoming increasingly important for investors, and our survey highlights investors' appetite to pursue both purpose and performance. However, practical integration has its challenges due to data and technology barriers, and deep ESG investment is still finding its feet. The next tw...................... To view our full article Click here
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