Investors now generally agree (72%) that climate risk is investment risk and about eight in 10 agree that the transition to a low-carbon economy is inevitable. But 86% also say the transition will present new investment opportunities. Nearly half (43%) say their organization currently is addressing climate risk in portfolios, and seven in 10 are currently making a commitment to Net Zero carbon or plan to within the next two years.
Investors also are keenly interested in investments designed to have a tangible impact related to urgent societal issues and concerns. More than half agree they can impact social inequality through investment choices, with about half (49%) currently investing in social investments or planning to in the next two years. They are exploring a range of opportunities, from community infrastructure projects (43%) and fintech innovations addressing financial inclusion (42%) to investments focused on diversity, equity and inclusion (DE&I) efforts (40%) and affordable housing (38%).
Investors are searching more widely than ever for attractive returns, secure income, effective risk management—and sound strategies for seizing the positive opportunities that change often generates. Our findings provide early, authoritative signals on where the search likely will lead—and how advisors can shape portfolio guidance that investors will truly value in coming months and years.
Jeff Carlin is senior managing director and head of U.S. wealth advisory services at Nuveen.