Report measuring sustainable investing engagement challenges conventional wisdom

Natixis Investment Managers, a global asset manager with nearly $1.4-trillion in assets under management, released new data Nov. 9 showing how investors are deploying environmental, social and governance (ESG) investing strategies. “The findings challenge conventional wisdom about who is using ESG and why,” they write.

The survey of 8,550 individual investors in 24 different countries is written about in the report, Values alignment only the tip of the iceberg for ESG. It found that 78 per cent think governments have a responsibility to address societal problems, while 82 per cent think companies should be held responsible for the same.

“No longer a phenomenon driven primarily by millennials, women, wealthy and European investors, global demand for ESG is accelerating among mainstream of investors,” they add. “North America now leads the world in ESG adoption.” 

They add that 60 per cent of investors surveyed reject the idea that companies are responsible only for creating value for shareholders. “The findings show that investors also expect accountability from companies for their impact on the environment and society, and they want to see more action from policymakers and the private sector, including fund managers.” 

Holding companies accountable 

The survey found that 77 per cent believe it’s their responsibility as investors to hold companies accountable for their impact on society, including climate change and inequality. The survey also found 55 per cent believe fund managers should sell their shares in companies with poor ESG records, while 74 per cent expect tier fund managers to engage with companies to influence both ESG and better business practices.

“With total assets worldwide in environmental, social and governance investment strategies reaching $1.6-trillion in 2020,” they say “21 per cent of individual investors currently employ ESG investing strategies. Of those, 24 per cent invested in ESG for the first time in the past year.” They add that 49 per cent of those not yet invested in ESG strategies were interested in learning more. 

They further add that only one in five investors believe that investing in ESG means sacrificing investment performance: “Investor sentiment has shifted dramatically since 2017 when Natixis IM found 64 per cent of investors surveyed believed they would need to sacrifice some return potential to have investments that matched their personal values,” they write.