Institutional Investors Can't Ignore ESG

According to a survey by Federated Hermes among 100 British institutional investors, the importance of ESG factors for institutional investors has increased.

Институциональные инвесторы не могут игнорировать ESG

First Responsible Capitalism Survey, held in September 2021 of the year, showed, which for most institutional investors (88%) ESG factors play a central role in making long-term investment decisions and are considered more important, than traditional financial indicators.

The study also showed, what investors understand, what positive impact on business efficiency can investing in a company have?, who implement ESG principles. According to most institutional investors, company, focusing on ESG issues, will outperform their competitors (83%), get higher long-term profit and reduce investment risk (80%).

79% institutional investors consider, what companies, with ESG deficiencies, should be avoided — even if short-term income looks attractive.

Looking back over the past year, investors think, that social, environmental and corporate governance factors are heavily weighted, than 12 months ago, which indicates that, that they have become much more important in their investment approach.

78% think, that social factors and environmental factors(eg, Diversity and Inclusion Policy, healthy working conditions, efficient use of energy) are more important, than a year ago;

While ESG is increasingly focusing on, for responsible investors, this is just one piece of the bigger picture.

Our survey shows, that institutional investors find engagement more and more effective. Last year's successes clearly sparked a huge shift in investor sentiment. Now the preponderance is on the side of those, who prefers long-term financial sustainability to short-term benefits" - noted in research by Federated Hermes

Based on materials from Bloomberg

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