Investors want clearer labelling on responsible investments

It’s very clear that environmental, social and governance (ESG) factors in investing are here to stay. The industry must therefore attempt to translate the debate from institutional to retail markets; to better understand clients’ needs on ESG-related issues and to help educate those clients about how best to reflect those needs within their portfolios.

To investigate which of these needs were most prominent in individuals’ minds, we asked them what steps could be taken to make it easier or more attractive for people to invest in responsible or ethical investments.

One of the top factors investors identified was clearer labelling on investment products. 36% of investors (39% in Asia and 33% in Europe) said this would make it clearer exactly what they were investing in.

Another important factor was improved transparency about where their money is being invested, with 49% of investors (53% in Asia and 45% in Europe) saying it was an important or vital consideration.

The view that Governments could provide additional tax breaks on ESG investment was also an important consideration, with 36% of investors (38% in Asia and 34% in Europe) rating it as an important or vital consideration.