Investors see climate change as one of the most critical ESG issues, according to the findings of a new study by Robeco.
Meanwhile, net-zero commitments are becoming commonplace in investment strategies.
The second Robeco ‘Global Climate Survey’ covers 300 of the world’s largest institutional and wholesale investors, representing around $23.7 trillion in assets under management.
Findings show that nearly half of investors have made a public commitment or plan to achieve net-zero greenhouse gas emissions from their investment portfolio by 2050. Only 11% of North American investors committed to net-zero, lagging their peers in Europe (40%).
Encouragingly, the Robeco report shows that investing in sustainability-related themes such as renewable energy or green technology is increasing. Almost three-quarters (70%) of investors are currently implementing thematic investing, with European and Asia Pacific investors leading the way.
Active ownership, which includes engagement and voting, is also rising – now a significant factor in 73% of investment policies, compared to 54% two years ago. The trend is most robust among European investors – from 81% to 90% in the next two years.
While there is still uncertainty around biodiversity, Robeco’s survey shows investor awareness is growing. Now, 41% of investors say biodiversity is a significant factor of their investment policy compared to 19%, an increase of more than double over the past two years.
According to 50% of investors surveyed, a lack of research data, ratings and company information on biodiversity presents a challenge.
Lucian Peppelenbos, climate strategist at Robeco, said: “While there is uncertainty around these topics, we also know that we must take urgent action. We don’t have the luxury to wait for perfect data or perfect solutions.
“As investors, we need to pull up our sleeves and work our way through it, as we have the means to put money to work where it can make a difference.”
© 2022 funds europe
