Investors welcome mandatory ESG disclosure

The interest in environmental, social and governance (ESG) investing is continuing to grow amongst retail investors. But with that increased interest comes a demand for more information on how these investments are specifically contributing to ESG causes.

Our latest research showed that investors would like as much information as possible on four main areas:

• The ESG objectives of the fund
• The strategy in place to deliver the ESG objective
• Whether the ESG objective has been met
• The specific companies invested in

Demand for this disclosure is high, with 79% of investors agreeing that it should be mandatory to receive detailed information on how the companies they are invested in perform across ESG criteria.

The demand for mandatory disclosures was slightly higher in Asia with 81% agreeing versus 76% of investors in Europe. The country with the highest demand was Indonesia with 90% of investors seeking mandatory disclosures.