More than three quarters (79%) of professional investors believe it’s important that sustainability is integrated into the overall investment process as part of their asset allocation selection criteria, according to research from Fulcrum Asset Management.
The findings showed 82% of advisers felt it was important, as well as 76% of institutional investors including consultants, pension fund managers and trustees.
Samriddhi Sharma, responsible investment associate at Fulcrum, said a combination of climate change, new regulation and an increasing need for innovation in this space, means most investors should consider embedding ESG risks and opportunities in their overall investment process.
Sharma said: “Integrating ESG considerations when it comes to asset allocation signals strong and thoughtful governance. On the other hand, ignoring ESG factors is a risk.
“Despite recent challenges from energy prices to new government policy, we believe that ESG considerations should and will continue to be at the forefront of investors’ minds.”
