The latest Sustainable Signals survey from the Morgan Stanley Institute for Sustainable Investing reveals a significant opportunity for asset managers to better align their sustainable investment practices, products, and reporting with the expectations and priorities of global asset owners.
The study noted that more than half of investors are planning to increase their allocations to sustainable investments over the next year. The report surveyed over 2,800 investors across the U.S., UK, France, Germany, Switzerland, and Japan.
The findings indicate that 77% of investors are interested in sustainable investing, with 54% expecting to increase the percentage of their portfolios allocated to sustainable investments in the next 12 months.
The study also highlights the growing belief among investors that strong ESG (Environmental, Social, and Governance) practices can lead to better long-term returns. In the U.S. and Europe, 84% and 85% of respondents, respectively, expressed interest in sustainable investing.
Interest levels were particularly high among millennial investors in these regions. The study explores key drivers and barriers to sustainable investing, with investors expressing a desire for companies to address environmental and social issues.
The majority of respondents consider a company’s reporting on sustainability practices, carbon footprint, and emissions reduction commitments when making new investments.
Additionally, over 60% of respondents are likely to purchase carbon offsets for their investment portfolios if available. The findings indicate a sustained and growing interest in sustainable investments globally.
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