Transition firms are an area an area of contention for investors

You might think that with certain industries or sectors it would be clear cut on whether investors thought they should be included in environmental, social and governance (ESG) focused funds. Those involved in deforestation, weapons, heavy pollution or pornography might seem the obvious ones to be excluded.

However, when investors are presented with more complex scenarios involving firms like these the response requires more thought. For example, 63% of investors agree that an oil, gas or mining company investing in renewable technologies to transition to a carbon-free future could be included within an ESG fund that they invest in.

Another scenario presented to investors was a pornography company with a carbon-neutral or net-positive (i.e. it removes more carbon than it emits) footprint. Whilst less positive on this example, 34% of investors still agreed that it could be included.