Schroders Poll: Sustainable Investing Remains A Challenge For Institutional Investors

Sustainable investing continues to present a challenge to nearly four out of five institutional investors, according to a new survey from global investment manager Schroders, with performance concerns and a lack of transparency/data leading the way.

Schroders polled some 500 institutions for its latest Global Institutional Investor Study, including surveyed a wide range of global pension funds, foundations, endowments and sovereign wealth funds. Key highlights:

  • 77% of survey respondents reported that investing sustainably remains a challenge.
  • Almost half (48%) say they’ve increased their allocation to this area over the past five years
  • Around a fifth of institutional investors both in North America (22%) and Asia (23%) say they do not allocate to sustainable investments. The compares to a global average of 17%.
  • 67% say sustainable investment will become more important over the next five years. This sentiment was strongest in Latin America and Europe with 85% and 84% of investors respectively in these regions sharing this opinion.
  • A greater number of institutional investors in North America feel sustainability should be a consideration when investing in alternatives, as compared to the global average (43% vs 29%).

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