UK. Trustees warn lack of member appetite for ESG investing is hindering progress
More than half (53 per cent) of professional defined benefit (DB) pension trustees have cited the lack of member appetite for environmental, social and governance (ESG) investing as a factor hindering the growth of sustainable investing.
The study, conducted by Charles Stanley Fiduciary Management, found that 35 per cent felt a lack of understanding about the options available as a hindrance, while the suspicion that ESG investing was just a fad, fears that it could harm returns, and underwhelming investment vehicles, were cited as factors by 31 per cent of respondents.
Meanwhile, just 2 per cent felt that a preference for activist investing was hindering progress, while 18 per cent cited the lack of a clear ESG framework, and regulatory uncertainty.
Despite these factors, almost three-quarters (73 per cent) of professional DB trustees said they had an increased appetite for sustainable investing, while 51 per cent felt ESG should be mandated by regulation.
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