Report: Sustainable investments now mainstream, social themes need better data

A report published by FTSE Russell shows that sustainable investing is here to stay and is embedded in our investment practices. The annual survey looks at the sustainable investment landscape for asset owners; the priorities, challenges and opportunities. Over 180 asset owners in 70 countries participated in the research.

Key findings include:

  • Eighty-six per cent of asset owners globally are using sustainability elements in portfolios, up from 76 per cent in 2021, and in the APAC region, this number rises to 97 per cent

  • Fifty-seven per cent of all asset owners say that mitigating long-term investment risk is a key factor

  • Social theme interest increased from 60 per cent in 2021 to 73 per cent in 2022, though a lack of standardisation in the data available to asset managers regarding social priorities was identified as an issue with uptake of this priority

  • If better data were available, diversity and inclusion is a top priority (52 per cent), followed by public policy (49 per cent) and labour rights (47 per cent)

  • Priorities are similar across regions, with APAC more focused on environmental considerations (72 per cent) compared with the Americas (53 per cent) and Europe, the Middle East and Africa

  • Considerations of climate/carbon were less of a priority in this report, dropping from 67 per cent to 41 per cent

Read the full report - Sustainable Investment Insights October 2022