09/11/23

ESG: 85% of investors, executives to boost ESG investments, despite economic headwinds

As published on: energy.economictimes.indiatimes.com, Thursday 9 November, 2023.

The survey, which canvassed opinions from 250 C-suite executives and 250 global investors, also revealed that 84% of executives see ESG as a key to a more robust corporate strategy. 

A Bloomberg Intelligence survey released on Wednesday showed that 85% of investors and corporate leaders are set to increase their investments in Environmental, Social, and Governance (ESG) over the next five years, signalling strong momentum in ESG despite current geopolitical and macro-economic challenges.

The survey, which canvassed opinions from 250 C-suite executives and 250 global investors, also revealed that 84%of executives see ESG as a key to a more robust corporate strategy. Additionally, 85% of investors believe that ESG investments lead to better financial returns and more resilient investment portfolios. 

Adeline Diab, Global ESG Research and Strategy Director at Bloomberg Intelligence, emphasized the evolving perception of ESG, stating, "ESG has moved from a fringe concern to mainstream and finally, to a mandated necessity."

Despite ESG not being a top current priority for 55% of surveyed C-suite executives, the long-term investment intentions point to a significant shift in focus towards sustainable business practices. The survey highlights that embracing ESG could be crucial for companies to maintain market share, with 81% of executives expressing concerns about falling behind their peers in ESG implementation.

Investors and executives are also recognizing the role of Artificial Intelligence (AI) in enhancing ESG practices, with 90% stating that AI is more of a 'friend than foe' in the realm of ESG.

The findings suggest a crucial year ahead for ESG, with expectations of enhanced investor-corporate dialogue on ESG accountability and the integration of emerging themes such as water sustainability, the circular economy, and biodiversity into corporate strategies.

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ESG ESG Investments