Two-thirds of asset management professionals surveyed (65%) say that they are using sustainable investing strategies to achieve competitive market-rate financial return alongside positive social and/or environmental impact. Sixty-four percent believe its adoption will continue to grow, according to a new survey published today by the Morgan Stanley Institute for Sustainable Investing and Bloomberg L.P. The new Sustainable Signals: The Asset Manager Perspective report examines the practices and perspectives of asset managers on sustainable investing and offers insights and action steps for asset managers and asset owners interested in pursuing sustainable investing strategies. The survey results indicate that this surge in sustainable investing activity has been spurred by rising investor demand and media coverage, resulting in a proliferation of new products from both specialist and mainstream asset management firms.
“Sustainable investing continues to make significant inroads in the broader investment community, led by individual and institutional investor demand for products that effectively and credibly deliver both financial and social returns,” said Audrey Choi, CEO of the Morgan Stanley Institute for Sustainable Investing. “However, as the market grows, it’s imperative we empower asset owners and asset managers with information and insights that enable them to combine the best of traditional investing practices with rigorous and material environmental, social and governance considerations.”
Sustainable Investing Trends at a Glance
Among 402 individuals surveyed at U.S. asset management firms:
89% are familiar with sustainable investing
65% practice sustainable investing
64% surveyed believe its adoption will continue to grow
62% say proof of financial performance by sustainable investing products would increase firm’s commitment
55% say the field lacks credible data to inform decision making
51% are confident they can explain the non-financial impacts of sustainable investing to clients
“At Bloomberg, we see broader interest in sustainable investing approaches among asset managers, who are adopting new analytical approaches and differentiating their investment products. This shift is driven by both client demand and potential benefits for manager performance, both to manage ESG risk and identify sustainability-driven opportunities,” said Curtis Ravenel, Global Head of Sustainable Business and Finance at Bloomberg LP. “As a result, managers and analysts are definitely starting to demand more transparent and actionable information to enable better investment decision-making.”
For more information, please see Sustainable Signals: The Asset Manager Perspective.
The Morgan Stanley Institute for Sustainable Investing
The Morgan Stanley Institute for Sustainable Investing builds scalable finance solutions that seek to deliver competitive financial returns while driving positive environmental and social impact. The Institute creates innovative financial products, thoughtful insights and capacity building programs that help maximize capital to create a more sustainable future. For more information about the Morgan Stanley Institute for Sustainable Investing, visit www.morganstanley.com/sustainableinvesting.
Morgan Stanley is a leading global financial services firm providing investment banking, securities, wealth management and investment management services. With offices in more than 43 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.
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