Changes in climate policies and public perception, along with technological advances, are already impacting on investors and businesses, resulting in both risks and opportunities as the UK looks to achieve net zero by 2050.
Our survey of 91 investors has revealed some fascinating insights into their attitudes and the actions they've taken during this period of adaptation and change.
"Climate change is the number one issue of our generation, and as such, it carries a material risk to our financial investments."
Survey reveals common areas of discussion among investors
Why are investors considering Environmental, Social and Governance (ESG) factors in their decision-making?
Which ESG issues are of most concern for investors, trustees and asset owners?
What goals have investors set to align their investments against the UK government's commitment to net zero by 2050?
We asked why investors are considering Environmental, Social and Governance (ESG) factors in their decision-making with responses ranging from ‘responding to legislation’ (91%), to ‘managing risk’ (77%), as well as ‘demand from members and policyholders’ (28%).
When asked which issues would be most concerning for them as investors, trustees and asset owners, responses were varied, including ‘fall in equity values’ (38%), ‘additional rise in average global temperatures’ (27%), ‘fall in gilt yields’ (20%) and ‘rise in inflation’ (16%). Read the full report here.
Other insights about investment trends uncovered in the survey include
- important ESG themes for investors;
- issues causing a significant shift in investments;
- support needed to work through TCFD;
- concerns about criticism of investments;
- net zero commitments and alignment with the Paris Agreement; and
- achieving positive social and environmental outcomes.
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