In 2022, a confluence of financial, regulatory and geopolitical headwinds has contributed to more volatile market conditions. In such an environment, ESG considerations have never been more pertinent.
It was against this backdrop that Capital Group’s annual survey collected views from more than 1,100 investment professionals across Europe, North America and Asia on ESG-related issues.
The first chapter of the 2022 global study, which you can read here, focused on the drivers of ESG adoption. In this second instalment, the survey explores investors’ product preferences and provides some revealing insights into the breadth of innovation in the ESG space.
There is strong investor appetite for ESG products that address multiple sustainability themes. However, there is a gap between investor demand and the availability of such offerings.
50% of professional investors say the ability to offer exposure to the full spectrum of United Nations Sustainable Development Goals themes is an important consideration when selecting funds.
Demand for more diversified, multi-thematic ESG solutions may reflect a desire to steer away from funds with a quality and growth bias, a style that has suffered amid the market rotation earlier this year.
More than 80% of investors prefer some exposure to transitioning companies as there is growing acceptance that a sustainable future cannot be achieved solely by backing companies considered to be ESG leaders.