Skip to main content
MENU
Subscribe
  • Sign Up Free
  • LOGIN
  • Subscribe
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2023 Defined Contribution East
    • 2023 ESG Investing
Breadcrumb
  1. Home
  2. ESG
October 11, 2017 01:00 AM

Performance, transparency and risk cited as the biggest barriers to sustainable investing — survey

Meaghan Offerman
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Getty Images/iStockphoto

    Seventy-seven percent of institutional investors globally believe sustainable investing remains a challenge, with performance, transparency and risk concerns cited as the biggest barriers to its incorporation, said a survey from Schroder Investment Management released Wednesday.

    Forty-four percent of respondents identified performance concerns as a hurdle to sustainable investing; 41% said "a lack of transparency and reported data"; and 28% cited risk measurement and management difficulties. Another 23% said cost was a challenge. (Multiple answers were allowed.)

    While challenges remain, 48% of respondents reported that they've increased their allocation to sustainable investments over the past five years, and 67% believe sustainable investing will become more important over the next five years. Globally, 17% of respondents said they do not invest in sustainable investment strategies.

    By geography, 60% of European respondents reported an increase in their allocation to sustainable investments over the past five years, despite being the region with the highest percentage of investors who find sustainable investing "very challenging" at 27%. Additionally, 48% of North American respondents reported an increase in their allocation, followed by Latin America, 43%; and Asia, 33%.

    Latin American respondents were the most positive on sustainable investing's role over the next five years with 75% predicting is will be somewhat or significantly more important, followed by Europe at 74%, North America, 63%; and Asia, 59%.

    Other findings from Schroders' survey include:



    • 76% of investors said sustainability should be a consideration with equity investments, followed by infrastructure at 49%, credit, 44%; real estate, 40%; alternatives, 29%. Another 17% said "none of the above." (Multiple answers were allowed.)

    • North American investors were the most positive on sustainability considerations for alternative investments at 43%, compared to 21% of Asian investors, 26% of European investors and 34% investors in Latin America.

    • By region, 23% of investors in Asia said they do not allocate to sustainable investment strategies, followed by North America at 22%, Latin America, 17%; and Europe, 10%.

    Five hundred global institutional investors, including pension funds, endowments, foundations and sovereign wealth funds, were surveyed in June. Nearly half of the respondents were based in Europe, 200, followed by Asia, 150; North America, 115; and Latin America, 35.

    Related Articles
    A new threshold for sustainable and impact investing: What investors need to kn…
    Global sustainable investment strategy assets up 25% in 2-year period — report
    Sustainable strategies on growth track in U.S.
    Principles for Responsible Investment outlines goals for next 10 years
    Commentary: Creating a virtuous circle for ESG-minded investors
    European Commission group outlines sustainable investing goals
    Investors, managers given role to play in Europe's future sustainable finance s…
    Morningstar: Netherlands leads list of countries with strong ESG companies
    Recommended for You
    Paul Bodnar
    BlackRock's sustainable investing chief to join Jeff Bezos' climate philanthropy
    california-flag-capitol_i.jpg
    California bills call for CalPERS, CalSTRS to divest fossil fuels, company climate disclosure
    power_plant_emissions_1550-main_i.jpg
    Net-Zero Asset Owner Alliance increases scope, expectations for asset owners in 2023 and beyond
    The Institutional Investor's Guide to ESG Investing
    Sponsored Content: The Institutional Investor's Guide to ESG Investing

    Reader Poll

    January 25, 2023
    SEE MORE POLLS >
    Sponsored
    White Papers
    Show Me the Income: Discovering plan sponsor and participant preferences for cr…
    The Future of Infrastructure: Building a Better Tomorrow
    Outlook 2023: Opportunity in a volatile world
    Research for Institutional Money Management
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    December 12, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2023 Defined Contribution East
      • 2023 ESG Investing