How do investors see ESG and what does that mean for business?

Nadja Picard, Global Reporting Leader, Partner, PwC Germany

What do investors really think about ESG? To what extent does it drive their investment decisions? What actions do they seek from companies? To find out, we surveyed 325 active asset managers globally. 

The results are striking. Nearly 80% said ESG was an important factor in their investment decision-making. Almost 70% thought ESG factors should figure into executive compensation targets. 

At the same time, 81% expressed reluctance to take a hit on their returns exceeding one percentage point in the pursuit of ESG goals. This isn’t surprising given asset managers’ fiduciary duty to seek the best returns possible, and it shouldn’t obscure the reality that asset managers are sensitive to the risks and opportunities of ESG. Among ESG issues, reducing carbon emissions is far and away the number one ESG issue that investors want companies to prioritise.

Investors can reward companies that have a clear, long-term strategy for positive ESG-linked reinvention. We recommend to business leaders that they be upfront with investors about their plans to reset their strategy, reimagine their reporting, reinvent their operations, and drive toward new outcomes. This builds trust while creating sustained outcomes for the long term.

Contact us

Nadja Picard

Nadja Picard

Global Sustainability Reporting Leader, Partner, PwC Germany

Tel: +49 (0)211 9812978