A new paper by World Resources Institute finds strong interest and opportunities and key barriers for sustainable investing within the US institutional investor marketplace.
A survey of over 100 investment professionals shows that institutional investors - including pensions, foundations, universities, and NGOs - are increasingly considering the material importance of environmental, social, and governance (ESG) factors in constructing their portfolios. Stakeholder pressure and economic drivers are making sustainability an issue that long-term investors simply cannot ignore.
As can be seen in Figure ES 1, the paper highlights the current sustainable investing landscape, outlining key drivers, barriers and strategies investors will need to address when considering the material importance of ESG factors in constructing their portfolios.
For those starting on their journeys to sustainable investing, this paper provides insights into common questions and challenges investors will need to grapple with. It also outlines different sustainable investing strategies (illustrated in Figure 4) and provides initial steps investors and their partners can take to overcome barriers and advance in the market.
Read the full paper here.
Parts of this post were excerpted from a post on the World Resource Institute blog: "Navigating the Sustainable Investment Landscape," By: Elizabeth Lewis, Ariel C. Pinchot and Giulia Christianson