While there is no doubt that investors have accepted ECG (Environmental, Social և Management) investments, their awareness of company և asset managers shows that investors can use more research լավ better ECG research tools.
According to a recent survey by Investopedia և Treehugger, many investors admit that when it comes to companies’ research on the impact of ECG, they give in to it. The most common signal to investors that an investment meets ECG standards is that the company is generally perceived as “better” in its ECG initiatives than its industry peers. Many do not use ECG stock surveys or ECG rating cards from financial services or equity providers.
The main way ECG investors apply ECG criteria is to invest in investment decision-making by excluding investments and industries from individual portfolios. 45% say they have invested in a company or fund, and 29% say they have refused or been sold for ECG-related reasons.
The winner of the ECG is es Tesla
Tesla topped the list of leading US companies known for its ESG initiatives or affiliates, with almost a third of respondents considering Tesla to be in line with ESG values. More than a third said none of the companies seemed to meet the ECG standards.
While Tesla, an electric car maker, may have some environmental aspects to the ECG, the overall rating on ECG screens, such as Sustainalytics և MSCI, is average. In fact, Tesla considers Sustainalytics, an ECG ներդր investment investment data T research company, to be a “high risk” of having high ECG standards. MSCI ranks Tesla as the industry leader in Clean Technology և Corporate Conduct, but notes that Tesla lags behind the industry with its Job Management.
Apple, meanwhile, is the second most popular choice among ESG-related companies with 30% of respondents, with slightly better ESG ratings from both Sustainalytics and MSCI. Sustainalytics assumes that the iPhone maker is at low risk for ECG, և its management team effectively manages ECG risk. MSCI, on the other hand, gives Apple an average rating of ECG concerns, saying it lags behind corporate behavior, supply chain standards, and e-waste issues.
Investopedia և Treehugger’s research shows that as the demand for ECG investments increases, investors want better ways to look at ECG issues. Less than half or 37% of ECG investors claim that ESG funds և stock researchers help assess whether the investment meets their ECG criteria. The constant topic of the survey’s open-ended questions was answers, indicating readers’ dissatisfaction with the tools available for accurate ECG measurement or knowing how well the investment matched their values.
How ECG investors find information և include ECG criteria
When it comes to ECG-related sources of information, most ECG investors surveyed said they turned to finance and business websites. Watchdog groups were less popular, with only a third or 32% of investors saying they were looking for information on ECG investments.
Vanguard is a leader in ETF recognition
In terms of ETF awareness among Investopedia և Treehugger readers, Vanguard has led more than half or 55% of respondents as an ETF provider of the brand, and 28% aware of ESG offers. Loyalty is in second place, S iShares is in third place with both the overall ETF awareness level of 38% and the ESG awareness level of 18%. Surveyors may already be clients of companies they associate with ESG investments, but the Vanguard brand association with the investment theme is still very strong. For most of the other investment companies surveyed, awareness of ECG offers fell to about a third of those aware of the brand.
While Vanguard is the industry leader in ESG investment, its core ESG fund, the Vanguard FTSE Social Index Fund, captures the investment giant’s $ 7.2 trillion in assets (AUM) with its $ 10.87 billion AUM : In fact, according to the MSCI rating of ESG investment funds, Vanguard is third with the Parnassus Core Equity Fund with $ 22.94 billion AUM to ESG and iShares ESG Aware Fund with $ 13 billion. Fidelity Investments, the brand that ranked second among readers in terms of ECG awareness, does not have any fund in the list of MSCI’s best assets in 2021.
Investors are increasingly willing to align their investments with the fund providers of ECG-related companies, but many rely on the personal judgment of the ECG investor, not using the available research and measurements of ECG rating providers. This is a huge opportunity for the financial services industry, as ECG investments are only likely to increase 67 67% of respondents plan to invest more in companies with strong ECG initiatives over the next five years.
Details by Amanda Morelli / Adrian Nesta.