ESG
The ESG Phenomenon: Capital Group Study
The latest developments in the ESG space.
A new study by Capital Group, an asset manager, shows that 40 per cent of global investors that people are shy of adopting ESG ideas because there's not enough innovation in the space.
According to the study, investors think that there are not enough
funds offering a broad spectrum of themes across ESG. They want
more innovative products and recognise the need to invest in
companies that are looking to transition their business models to
be more sustainable.
Capital Group's ESG Global Study surveyed 1,130 institutional and
wholesale investors, including pension funds, family offices and
insurance companies, as well as funds of funds, retail/private
banks and financial advisors, located in Europe, Asia-Pacific and
North America. It is the second instalment of the 2022 global
study, which seeks to identify key drivers and challenges facing
ESG investing.
“Investors looking to access a broad range of ESG themes must
currently buy several single-thematic or narrowly focused funds,
underscoring the need for all-in-one solutions that allow
investors to target sustainability through the widest lens,”
Jessica Ground, global head of ESG at Capital Group, said in a
statement.
“Furthermore, the study highlights a growing acceptance within
the investment community that the transition towards a
sustainable future cannot be achieved solely by backing companies
that are already leaders at the expense of transitioning
companies,” she added.
The study highlights a gap between investor demand and the
availability of funds that provide exposure to multiple
themes:
-- Nearly four in 10 of global investors think a lack of
product innovation is holding back greater adoption of
ESG;
-- Almost half of global investors think there are not
enough funds aligned to the United Nations Sustainable
Development Goals;
-- Nearly half also report that existing funds that target
the SDGs overly focus on environmental issues; and
-- 43 per cent say there is a specific need for
multi-thematic ESG funds.
