Two-thirds of asset managers use sustainable investing strategies and most believe the trend will continue to grow in the future, according to a survey released Thursday by the Morgan Stanley Institute for Sustainable Investing and Bloomberg L.P.
The asset managers say they are using the techniques both to achieve competitive market-rate financial returns, as well as to foster a positive social and environmental impact on the world.
However, a majority (62 percent) also say additional proof of good performance would increase their firms' commitment to the products.
The survey results indicate that the increased interest in social, responsible and impact investing is spurred by rising investor demand and media coverage, which has resulted in a proliferation of new products from both specialist and mainstream asset management firms.
Eighty-nine percent of asset managers are familiar with sustainable investing, and 51 percent say they can explain the non-financial impacts of the strategy to clients. But more than half (55 percent) still say the market lacks credible data that could help them make more informed decisions.
“Sustainable investing continues to make significant inroads in the broader investment community, led by individual and institutional investor demand for products that effectively and credibly deliver both financial and social returns,” says Audrey Choi, CEO of the Morgan Stanley Institute for Sustainable Investing.
“However, as the market grows, it’s imperative we empower asset owners and asset managers with information and insights that enable them to combine the best of traditional investing practices with rigorous and material environmental, social and governance considerations,” she adds.