Over half (52 percent) of environmental, social and corporate governance (ESG) investments have seen “improved long-term returns” since 2017, according to BNP Paribas Securities Services’ ESG Global Investor Study 2019.
The study also found over 65 percent of asset managers and owners reported that they had aligned their investment strategies alongside the UN Sustainable Development Goals (SDGs) by creating revenue targets for investee companies.
The “stronger commitment” to ESG investment since 2017 is reflected in further statistics that show asset managers and owners have increased 25 percent or more of their investments in funds incorporating ESGs by 9 percent and 27 percent, respectively.
However, the study also revealed that data and technology costs remain as barriers to ESG integration for 32 percent of respondents, compared to 16 percent in 2017.
Commenting on the trends identified in the study, head of asset owners at BNP Paribas Securities Services, Florence Fontan, said: “ESG investment is becoming increasingly important for investors, and our survey highlights investors’ appetite to pursue both purpose and performance.”
“However, practical integration has its challenges due to data and technology barriers, and deep ESG investment is still finding its feet. The next two years will be critical to achieving the right investment mix, technology and skills in place.”
