Fact-Based Trends from Cogent Reports™
If there were any doubt as to the appeal of Environmental, Social and Governance (ESG) or Impact Investing in the European institutional market, it can now be put to rest. In a recent survey of defined benefit pension investors, Cogent Reports found that three-quarters or more of European pensions are likely to incorporate ESG investing in their portfolios within the next year. Moreover, this strong interest in ESG investing is evident across pensions of all asset sizes. Yet relatively few European institutions say they have already incorporated ESG or impact investing in their portfolios, suggesting that the category is poised for substantial growth.
A recent article* reported that Europe now accounts for over half (53%) of the $22.89 trillion in global sustainable investment assets. If the European pensions have anything to say about it, that number will quickly multiply, providing a welcome source of new assets to investment firms specializing in this area. Of particular interest to asset managers should be pensions in Switzerland, Italy and the Netherlands, where Cogent found ESG investing earning the strongest appeal.
For more information on the recently released International Institutional Investor Brandscape report, review an overview.
* “Europe Accounts for Over Half of $22.89T Global SRI Assets as Sustainable Investing Takes Off.” Forbes.com, March 27, 2017.