Most global asset owners plan to step up sustainable investing, poll finds
A majority of global asset owners are looking to dial up allocation to sustainable investments in the next two years to meet growing demand from stakeholders, in spite of facing challenges related to data, regulations and greenwashing, according to a survey by Morgan Stanley Institute for Sustainable Investing.
The institute polled over 900 institutional investors and asset managers across North America, Europe and Asia Pacific earlier this year and found that over three-quarters “strongly” or “somewhat agree” that sustainable investment offerings influence mandate decisions, with 80% requiring their asset managers to have a sustainability strategy or policy in place.
“Institutional investors see a growth trajectory for sustainable assets globally in the coming years to meet increasing client and stakeholder demands in a more mature sustainable investing market,” Jessica Alsford, the institute’s chair and chief sustainability officer, says in a statement on December 5.
Their main challenges are availability of data, cited by 71%, closely followed by regulatory guidance, 69% and greenwashing, 68%.
As for preferred themes within sustainable investing, 41% prioritise healthcare and 40% favour financial-related ones.
The survey also found that 78% of asset managers expect their sustainable fund assets to grow over the next two years from an increase in new mandates and higher allocations by clients.