Posted inESG

More choice needed for ESG consideration

Five ways to integrate ESG into investments

A wider selection of environmental, social, and governance (ESG) products would make wealth businesses more likely to consider ESG factors when selecting a fund, according to a survey.

Delegates at Expert Investor’s ESG Congress in Berlin answered polling questions on ESG said that while ESG had become an increasingly important consideration for their allocation decisions (51%), there needed to be a wider choice (54%).

A further 52% said a stronger track record from ESG-focused funds would make them more likely to consider ESG factors when selecting a fund, and 48% said it would be better-defined, easily understandable industry-wide ESG standards that would push them along.

The delegates that took part in the poll said that their greatest challenge when dealing with ESG were both the lack of standardised definitions for ESG factors (57%) and a lack of choice in certain asset classes (57%). These were followed by the inability to compare and evaluate ESG funds objectively (41%), convincing clients of the attractiveness of ESG propositions (35%), and not enough performance track record from ESG funds (30%).

While the poll found that 54% believed ESG would become more integrated in their company’s fund selection and portfolio construction process over the next three years, 35% said ESG was something their offered to clients if they asked for it.

A further 17% of delegates said their company lacked interest in ESG factors and 30% said their clients lacked interest.is T

 

Jassmyn Goh

Jassmyn reported from Sydney to New York to Jakarta before joining Expert Investor. She was most recently Features Editor at Money Management and Super Review in Sydney.

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