Most investors plan to increase ESG allocation

Research by SIX Group has found that 84% of global investors expect to increase their allocation to ESG investments over the next five years.

The research surveyed 300 investors in the UK, US, Europe, Hong Kong and Singapore and found that 54% of respondents’ portfolios are currently allocated to ESG investments strategies. It also found the proportion of respondents in Asia, Europe and the US expecting to increase their ESG allocation ranging between 80% and 90%.

The survey also showed that the need for greater availability of ESG-related data is a key challenge facing the sector in every region, with 19.2% of respondents citing it as the biggest challenge to implementing an effective ESG investment strategy.

Martina Macpherson, Head of ESG product strategy and management at SIX Group says, “For asset managers attempting to navigate the complex jungle that is ESG investing, there is a clear need for modern analytical solutions spanning both primary and secondary markets. Market participants must be able to rely on providers that can tackle their interconnected data needs, changing regulatory requirements, and critically address positive performance management expectations through an end-to-end workflow.”