Surge in Sustainable Investing Revealed in Morgan Stanley and Bloomberg Survey
(3BL Media/Justmeans) – The best approach in the sustainable investing market is to leverage an investment firm’s strengths and focus on its unique value proposition in designing the products they bring to market. To maximize opportunities and develop credible investment products, firms may also need to invest more resources in growing their sustainable investing business.
A new survey published by the Morgan Stanley Institute for Sustainable Investing and Bloomberg, The New Sustainable Signals: The Asset Manager Perspective, examines the practices and perspectives of asset managers on sustainable investing and offers insights and action steps for asset managers and asset owners interested in pursuing sustainable investing strategies.
According to the survey report, which analyzed the views of 402 individuals at U.S. asset management firms, there is a noticeable surge in sustainable investing activity, which has been spurred by rising investor demand and growing media spotlight on the issue. The new trend is resulting in a proliferation of new products from both specialist and mainstream asset management firms.
The survey found that 89 percent of asset managers were familiar with sustainable investing and 65 percent currently practice sustainable investing. Even among respondents at firms that do not practice sustainable investing, more than half believe adoption will increase in the next five years. Of respondents already engaged in sustainable investing, 54 percent plan new ESG strategies in the next 12 months.
Survey respondents reported three top factors as ways to differentiate themselves from their peers: a “strong firm reputation” (28%), offering customized “products tailored to the sustainability themes that matter most to clients” (28%) and offering “innovative and new sustainable investing products” (27%). Client demand (29%) is the leading motivator for sustainable investment.
According to Audrey Choi, CEO of the Morgan Stanley Institute for Sustainable Investing, sustainable investing continues to make significant inroads in the broader investment community, led by individual and institutional investor demand for products that effectively and credibly deliver both financial and social returns.
Curtis Ravenel, Global Head of Sustainable Business and Finance at Bloomberg, said that the shift toward sustainable investing is driven by both client demand and potential benefits for manager performance, both to manage ESG risk and identify sustainability- driven opportunities. As a result, managers and analysts are seeking more transparent and actionable information to enable better investment decision-making.
Source: JM Press Release
Image Credit: 3BL Media