ESG investing will be industry standard within 5 years

Natixis survey of investors, financial professionals reveals widespread positivity

ESG investing will be industry standard within 5 years
Steve Randall

Investors and financial advisors are united in seeing the benefits of ESG investing.

A survey from Natixis Investment Managers has found that aligning organizational or individual values with investment strategies means achieving sustainability goals.

But the strategy also has investment benefits.

Most professional investors and individuals surveyed believe that ESG investing means potential active returns, but it can also mitigate exposure to regulatory and social risks.

Individuals think that companies with higher integrity levels will outperform their peers. Natixis notes that this is important as investors are not willing to lose performance even when seeking to align investments with their values.

The survey also reveals that almost two thirds of institutional investors believe ESG will become an industry standard within 5 years.

Seven out of 10 individual investors said that making a positive social impact through their investments is important.

The global survey included 450 financial professionals, 1,050 professional investors, 112 institutional investors, and 51 professional fund buyers, from North America.

Individuals values as consumers vs. investors

The survey found that individuals have similar values and strategies as consumers as they do when investing.

As consumers, 63% will seek to buy products from companies that align with their values; 60% do so with investments. And 59% will avoid buying products from companies that conflict with personal values; 56% will also do that when investing.

The full study is available on the Natixis Investment Managers website.

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