According to data from Cerulli Associates, investors under 40 are more interested in ESG investing than older peers. More than 2/3 of investors under 30 prefer that their investments have a positive social or environmental impact.
“We are seeing more and more clients looking to have a social impact beyond just purely financial returns with their investments. The mood music is changing,” comments Peter Harrison, chief executive of Schroders.
For many asset managers, incorporating ESG into wider investment decisions is increasingly important — a process most refer to as “ESG integration”. Now, asset managers invest in technology and create their own scoring systems to gain advantage.
Increasing attention on “culture and conduct risk” in many sectors, finance and banking perhaps most of all, has driven more demand for technology tools to address these governance challenges. Getting data driven insights can help transform those held back by culture or conduct related risks.