US Investors Want ESG Approaches, Survey Finds

A large majority of US investors see responsible investing as a core part of their strategy, according to a new survey.

Asset management group Nuveen — part of TIAA — polled 573 US investors and found that more than three quarters (76%) felt that responsible investment should always be factored into investment processes. In addition, 80% said responsible investment should be viewed as a long-term strategy.

Amy O’Brien, global head of responsible investing at Nuveen, said the results showed that investors recognized the importance of environmental, social and governance factors to corporate performance and future prospects.

“It’s clear that investors have come to view responsible investment as a sound strategy for generating portfolio value,” O’Brien added.

Within responsible investment, climate change was a key risk highlighted by many respondents to Nuveen’s survey. Two thirds (67%) agreed that responsible investing strategies could lessen the impact of climate risks on businesses.

Just under two thirds (61%) said they had taken some form of action on climate-aware investing. Many have engaged with an advisor or other financial professional to find out more about low carbon investments and the green energy transition, Nuveen reported. More than half (57%) expressed an interest in net-zero investment strategies.

The survey comes amid heightened political tensions over responsible investment, and climate change in particular. Mostly Republican-led states have enacted or are considering new rules banning or restricting asset managers’ ability to do business with state entities if they screen out fossil fuel companies, for example.

Democrat representatives in Congress have formed a Sustainable Investment Caucus to encourage politicians to engage with experts in the responsible investing sector.