More than 90% of U.K. and Europe-based institutional investors (93%) are worried about the state of ESG and sustainability practices in the U.S. amid a second Donald Trump presidency, according to a report by impact investment consultant Pensions For Purpose.
Only 17% of respondents in the "Impact Lens Survey Shorts" report stated that U.S. sustainability developments do not influence their investment decisions.
On Trump’s first day returning to presidential office, he signed an executive order withdrawing the U.S. from international climate treaty the Paris Agreement, through which countries have pledged to fight global warming.
However, over half (58%) of respondents planned to increase their impact allocations over the next 12 months, rather than decrease them or keep them at the same level, and almost two in five (42%) committed to maintaining current levels. No respondents intended to decrease allocations.
“The fact that 93% of investors are concerned about the state of sustainability in the U.S., combined with the significant influence of U.S. developments on their strategies, highlights the interconnected nature of sustainability in today’s global economy," said Bruna Bauer, research manager at Pensions for Purpose, in a news release. "However, there is strong momentum to increase sustainability allocations, which reflects the resilience and commitment of institutional investors to driving meaningful change."
The survey collected the views of 44 institutional investors, drawn from Pensions For Purpose membership.