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Most in finance support environmental, social and governance initiatives

December 01, 2022


ESG is being tested like never before. 

Republicans are pressing to get rid of it, regulators are cracking down on the misselling of ESG-labeled funds and bonds, and sustainable investing purists want to eliminate the acronym altogether. It’s also become less of a talking point for corporate executives. 

Still, love it or hate it, most in finance have decided that ESG is here to stay. A survey of 550 Bloomberg Terminal users found that more than 60% expect ESG to be a standard part of, or increasingly critical to, running a business. By comparison, roughly a third of the respondents think the strategy that takes into account environmental, social and governance issues — and impacts roughly $40 trillion of assets — is just a “fad.”

European respondents were most optimistic about ESG’s importance, followed by those surveyed in Asia, with the Americas trailing at roughly 50%.

Other studies offer similar findings. A recent PwC survey showed that 89% of large investors said they’ve already rejected -- or would consider rejecting -- an asset manager due to shortcomings in their ESG strategies. The same survey showed 86% would be similarly dismissive of those whose corporate ESG efforts were inadequate.

[Saijel Kishan and Natasha White]

More: Most in Finance Support ESG, Despite Republican Attacks

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