Buyers’ outlook additionally displays the necessity for sophistication and continued vigilance, with respondents citing distrust or issues about greenwashing, an absence of standardized ESG disclosure frameworks/requirements, and an absence of reliable information as the highest three potential limitations to RI development.
Other than ESG integration, the analysis revealed that every one different RI methods, reminiscent of company involvement, optimistic and detrimental screening, and thematic and influence investing, have been changing into extra frequent. This discovering additional signifies the rising RI understanding of Canadian traders.
When requested why they take ESG issues into consideration, survey members cited lowering threat over time as their high purpose, adopted by enhancing returns over time, and upholding their fiduciary obligation.
The highest three RI methods, in accordance with AUM, have been ESG Integration, company engagement & shareholder motion, and detrimental/exclusionary screening.
Accountable traders within the survey have been additionally overwhelmingly involved about local weather change, figuring out it as the most important development driver for RI over the following two years.