Bloomberg Intelligence’s ESG Market Navigator survey shows that 85% of investors and companies plan to boost ESG investment over the next five years.
The survey also found that 9 out of 10 executives and investors stated that AI is a ‘friend not foe’ for ESG, helping to improve traceability, generate better data and uncover controversies across languages, among other strengths.
Key findings of the survey are:
• Despite geopolitical risks and macroeconomic factors, 85% of investors and companies surveyed plan to boost ESG investment over the next five years
• 84% of executives say ESG helps deliver a more robust corporate strategy and 85% of investors reported that ESG leads to better returns, resilient portfolios and enhanced fundamental analysis
• The survey indicates a significant divergence between investors and executives on regional leadership in ESG
The survey, conducted in collaboration with Bloomberg New Economy, canvassed the views of 250 C-suite executives and 250 investors globally.
A majority of investors (85%) reported that ESG leads to better returns, resilient portfolios and enhanced fundamental analysis. Despite data consistency and funds regulation challenges, 90% of all respondents said that ESG could drive better returns over the next 12 months than the rest of the market, 92% said ESG helps deliver a more resilient investment portfolio strategy, and 86% said it is key to attracting and/ or retaining clients.
Adeline Diab, Global ESG Research and Strategy Director at Bloomberg Intelligence, says, “ESG has moved from a fringe concern, to mainstream and finally, to a mandated necessity. We expect 2024 to be about ESG accountability and an era where investor-corporate dialogue will be vital, 60% of investors hold companies answerable on ESG, while 40% of executives face ESG questions on over half their investor calls. I firmly believe that scrutiny will help shape a more credible ESG market overtime.”