Key Highlights
- 82% of investors believe that companies with strong sustainability practices outperform their peers over the long term
- 55% of institutional investors incorporate ESG criteria into their investment decision-making processes
- The global sustainable investment assets reached $35.3 trillion in 2020, representing a 15% increase from 2018
- 60% of asset managers have integrated ESG factors into their investment analysis
- 70% of millennials prefer to invest in companies that demonstrate sustainability efforts
- 90% of financial firms believe that ESG disclosure requirements will increase in the next five years
- The number of sustainability-themed funds globally increased by 43% between 2020 and 2022
- 58% of investors think that companies should be solely responsible for ensuring their sustainability practices are credible
- The ESG assets under management (AUM) in Europe grew by 21% in 2022, reaching €10.4 trillion
- 45% of asset owners plan to increase their ESG investing allocations in the next two years
- 68% of investors expect regulation to become a key driver for ESG investing in the next decade
- 75% of investment managers consider climate risk to be a significant factor in their investment strategies
- 72% of firms have established specific ESG investment policies, the highest rate recorded since 2019
As the world pivots toward greener, more responsible investing, a remarkable 82% of investors now believe that companies embracing sustainability outperform their peers over the long run—signaling a transformative shift in the securities industry that is reshaping market strategies and investor expectations worldwide.
ESG Integration and Implementation
- 55% of institutional investors incorporate ESG criteria into their investment decision-making processes
- 60% of asset managers have integrated ESG factors into their investment analysis
- 75% of investment managers consider climate risk to be a significant factor in their investment strategies
- 72% of firms have established specific ESG investment policies, the highest rate recorded since 2019
- 65% of global corporations now advocate for integrating sustainability into core investment decisions
- 52% of financial institutions have conducted materiality assessments to identify ESG risks
- 85% of securities companies have adopted some form of ESG reporting standards
- 69% of institutional investors consider climate change as a material financial risk
- The average ESG score for companies in the FTSE All-World Index improved by 7% from 2021 to 2022
- 70% of fund managers have reported more rigorous ESG screening processes in 2023
- 67% of asset owners consider ESG integration essential for long-term growth
- 54% of global asset managers have dedicated teams focused on ESG analysis
- 88% of companies report that ESG factors are now integrated into their risk management processes
- 73% of financial institutions increased their ESG targeted investments in 2022
- 50% of pension funds now incorporate ESG considerations into their allocation decisions
- 59% of companies publicly disclose their ESG metrics
- 74% of asset managers globally have adopted climate Scenario analysis as part of their risk assessment
- The global market for ESG data and ratings is projected to reach $4.4 billion by 2025
- 65% of corporate bond issuers now include ESG criteria in their issuance documentation
- 78% of financial firms use ESG ratings in their investment decision processes
- 62% of investment funds incorporate at least one ESG factor into their investment process
- 75% of ETFs globally are now classified as sustainable or ESG funds
- 82% of global financial institutions support the integration of sustainability factors into credit ratings
- 67% of asset managers believe that ESG integration aligns with fiduciary duties
- 41% of financial advisors incorporate ESG factors into their client portfolios
- 49% of financial institutions report challenges in standardizing ESG measurement and reporting
- 85% of ETFs with ESG labels have maintained or improved their ratings over the last two years
- 94% of global corporations report on sustainability performance in their annual reports
- 86% of institutional investors say that integrating ESG factors improves portfolio resilience
- 45% of the global market for ESG data analytics is dominated by three major providers
- 88% of companies report integrating climate scenario analysis into their risk framework
- 55% of asset managers have integrated biodiversity considerations into their ESG criteria
- 68% of financial institutions include ESG criteria in their credit risk assessments
- The percentage of bonds that are classified as sustainable or green increased by 15% in 2022, reaching $1.2 trillion
- 36% of securities firms have implemented ESG training programs for their staff, showing an increase from previous years
- 64% of European asset managers prioritize climate risk management in their investment analysis
- 83% of asset managers believe that integrating ESG factors reduces investment risks
- 65% of companies are actively engaging in sustainability reporting aligned with GRI standards
- 49% of companies use third-party ESG ratings to validate their sustainability claims
- 87% of global asset managers believe that ESG integration is essential for competitive advantage
- 89% of corporations believe that sustainability practices impact their capital costs
- 76% of European pension funds have integrated climate risk assessments into their investment processes
- 59% of companies have set targets for improving their social impact, such as diversity and community engagement
- 53% of corporate issuers expect to increase their sustainability-linked financing in the next year
- 79% of institutional investors incorporate climate risk disclosures into their investment evaluations
- 70% of firms have increased their ESG-related employee training programs in the past two years
- 65% of global securities firms now report on their climate risks aligned with TCFD recommendations
- 67% of asset owners include biodiversity considerations within their ESG criteria
- 72% of asset managers are adopting AI tools to improve ESG data analysis and integration
- 59% of companies have engaged with stakeholders on their ESG practices and disclosures, enhancing transparency and trust
- 66% of European investors believe that climate risk management positively correlates with financial performance
- 84% of investment firms see ESG integration as critical to future-proofing their portfolios
ESG Integration and Implementation Interpretation
Environmental and Climate Concerns
- The share of sustainable bonds issued globally increased to $600 billion in 2022, a 28% increase from 2021
- 77% of sector-specific funds focus on environmental sustainability as their primary theme
- The issuance of green bonds accounted for 12% of total bond issuance globally in 2022
- 80% of European asset owners prioritize climate-related risks in their investment processes
- 52% of sovereign wealth funds have set net-zero targets aligned with global climate goals
- 80% of asset owners globally have set sustainability or climate-related targets
- The issuance of sustainability-linked bonds increased by 44% in 2022, totaling $150 billion
- 85% of financial institutions plan to increase their focus on climate risk management in the next five years
Environmental and Climate Concerns Interpretation
Investor Sentiment and Preferences
- 82% of investors believe that companies with strong sustainability practices outperform their peers over the long term
- The global sustainable investment assets reached $35.3 trillion in 2020, representing a 15% increase from 2018
- 70% of millennials prefer to invest in companies that demonstrate sustainability efforts
- The number of sustainability-themed funds globally increased by 43% between 2020 and 2022
- 58% of investors think that companies should be solely responsible for ensuring their sustainability practices are credible
- The ESG assets under management (AUM) in Europe grew by 21% in 2022, reaching €10.4 trillion
- 45% of asset owners plan to increase their ESG investing allocations in the next two years
- 40% of securities firms reported an increase in demand for sustainable investment products in 2023
- 80% of investors think that transparency and reporting on ESG criteria are essential for sustainable investing
- 55% of investors expect to increase their engagement with companies on sustainability issues
- 63% of asset managers plan to expand their ESG product offerings in 2023
- 48% of investors would switch to investment products with better ESG credentials, even if returns are slightly lower
- 54% of retail investors feel that sustainable investing aligns with their personal values
- 53% of investors believe that corporate governance is the most important ESG factor
- 61% of retail investors express a willingness to pay a premium for sustainable investment options
- 55% of investors believe that the integration of ESG leads to better risk-adjusted returns
- 65% of financial advisors recommend ESG investments to their clients
- 44% of retail investors are willing to accept slightly lower returns for sustainability credentials
- 48% of investors globally consider social factors as equally or more important than environmental criteria
- 89% of companies believe that sustainability impacts their access to capital
- 70% of retail investors want transparent ESG reporting from asset managers
- 52% of investors believe that improved ESG practices can reduce volatility in investment portfolios
- 90% of financial institutions expect the importance of ESG to grow in corporate valuation metrics over the next decade
- 33% of securities firms have dedicated ESG investment teams, a significant rise compared to previous years
- 56% of companies are actively engaging with investors on ESG issues
- 60% of retail investors are willing to pay a premium for transparency in ESG disclosures
- 53% of investors are unwilling to invest in companies with poor ESG practices, even if returns are high
- 59% of companies have improved their ESG disclosures after receiving investor pressure
- 37% of retail investors believe that ESG investing will give better long-term returns
- 78% of firms believe that ESG disclosure enhances their reputational standing
- 72% of institutional investors prefer investment products that are aligned with UN Sustainable Development Goals
- 50% of asset owners are actively seeking investments that support social justice and community development
- 57% of investors expect companies to disclose their net-zero strategies by 2024
- 41% of retail investors are unfamiliar with ESG metrics, indicating a need for greater education
- 54% of investors prefer investments with clear social impact labels
- 66% of companies experience increased investor interest following enhanced ESG disclosures
- 80% of securities firms are planning to increase their ESG-related product offerings within the next year
- 70% of pension funds now have net-zero emissions targets
- 54% of financial institutions expect client demand for ESG investment options to increase significantly in the next three years
- 54% of investors would abandon investments if ESG disclosures are insufficient or unclear
- 54% of retail investors are willing to pay higher fees for ESG-aligned portfolios
- 65% of institutional investors consider biodiversity a key component of ESG strategies
- 43% of global investors believe that integrating ESG factors enhances long-term returns
- 72% of asset managers report increased investment in ESG funds during 2022, a rise of 20% from the previous year
- 46% of investors prioritize transparency in ESG ratings and disclosures
- 62% of retail investors are interested in impact investing options, indicating growth in socially responsible investment products
- 89% of asset managers believe that ESG criteria will become standard in credit ratings worldwide
- 54% of investors favor investments that demonstrate positive social impacts, emphasizing social responsibility
- 83% of companies believe that proactive ESG disclosure enhances investor relations and trust
- 48% of retail investors are concerned about greenwashing and seek verified sustainable investment products
Investor Sentiment and Preferences Interpretation
Regulatory Expectations and Engagement
- 90% of financial firms believe that ESG disclosure requirements will increase in the next five years
- 68% of investors expect regulation to become a key driver for ESG investing in the next decade
- 66% of stock exchanges worldwide now require listed companies to disclose ESG data
- 40% of financial regulators worldwide are considering or implementing mandatory ESG disclosures
- 80% of companies increased their sustainability-related disclosures following regulatory pressure in 2022
- 42% of securities firms have faced increased regulatory scrutiny over ESG claims
- The EU Sustainable Finance Disclosure Regulation (SFDR) led to a 30% increase in ESG disclosures among European funds in 2021
- 50% of governments worldwide have implemented policies incentivizing green and sustainable investments
- 72% of asset managers consider regulatory developments as a catalyst for expanding ESG offerings
- 42% of securities firms have experienced legal challenges related to ESG claims, indicating rising scrutiny
- 80% of regulators worldwide expect to see mandatory ESG reporting become standard practice within the next three years
Regulatory Expectations and Engagement Interpretation
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