Sustainability offers new investment opportunities
An overwhelming majority of professional investors believe that the United Nations Sustainable Development Goals will create new investment opportunities. This was revealed in a study conducted by LGT Capital Partners. More than half of investors already take sustainability aspects into account in their investments today.
Environmental, social and governance (ESG) factors are increasingly important in the investment decision-making of professional investors. This was a finding of a study conducted by LGT Capital Partners, based on surveys of over 200 professional investors from 28 countries, including pension funds and insurers. The research found that 89 percent of investors believe the 17 Sustainable Development Goals (SDGs) defined by the United Nations will create new investment opportunities. Investors were especially interested in those SDGs that can be linked to specific investment opportunities. There was a strong preference for climate action and renewable energy measures as well as access to clean water, health and education.
Overall, 84 percent of investors believe that integrating ESG factors into investment decision-making has an either neutral or positive effect on risk-adjusted returns, with 54 percent incorporating these in their investment decision-making. Also, 47 percent have already excluded managers on ESG grounds.
“Investors are increasingly turning to the SDGs to make their ESG and sustainable investment activities more outcome-oriented,” said Tycho Sneyers in a press release on the study. “The SDGs broaden the ESG scope from risk management to value creation in financial, natural and social capital,” added the Managing Partner of LGT Capital Partners.