Financial Analysts Journal· 2018Q1
Why and How Investors Use ESG Information: Evidence from a Global Survey
- 1,523citations
- Q1SCImago
- 2018year
Short summary
Mainstream investors cite relevance to investment performance (68%) as the primary driver for using ESG information, followed by client demand (54%), product strategy (51%), and ethical considerations (47%).
AI-generated from the title and abstract; the full text is not read.
Key points
- Relevance to investment performance is the top reason investors use ESG information (68% of respondents).
- Client demand (54%), product strategy (51%), and ethical considerations (47%) are other key motivations.
- Lack of standardized ESG reporting is a major impediment to its use.
- Negative screening is viewed as the least beneficial ESG investment style, while full integration and engagement are considered more advantageous.
AI-generated from the title and abstract; the full text is not read.
Abstract
Using survey data from mainstream investment organizations, we provide insights into why and how investors use reported environmental, social, and governance (ESG) information. Relevance to investment performance is the most frequent motivation, followed by client demand, product strategy, and then, ethical considerations. An important impediment to the use of ESG information is the lack of reporting standards. Among the various ESG investment styles, negative screening is perceived to be the least beneficial to investments and is driven by product and ethical considerations. Full integration and engagement are considered more beneficial and are driven by relevance to investment performance.
The authors' abstract, as published at the source. Financial Analysts Journal, 2018 · DOI ↗
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Field: Strategy and Management
Strategy and ManagementBusiness, Management and Accounting