In a new study, LGT Capital Partners surveyed over 200 investors in alternatives (including pension funds, endowments and insurers from 28 countries). The survey assesses how investors integrate ESG into their investment activities, their views on the SDGs, and their requirements for greater ESG integration in the future.
The research found that 89% of investors believe the SDGs will create new investment opportunities. While only a tenth of them currently assess the impact of investee companies on the SDGs, 40% plan on doing so in the next two years.
Investors stated that Goal 13 (Climate Action) and Goal 7 (Affordable and Clean Energy) are their top two SDGs to address in their investment frameworks. More broadly, investors have a preference for SDGs that can be linked to specific investment opportunities, such as clean water, health and education.
Assessing the status of ESG integration, the LGT Capital Partners survey, ESG to SDGs: the Road Ahead, finds:
Commenting on the survey findings, Tycho Sneyers, Managing Partner at LGT Capital Partners and board member at UN PRI, said:
"91% of investors believe the SDGs will help the financial industry to address pressing environmental and social issues. As such, investors are increasingly turning to the SDGs to make their ESG and sustainable investment activities more outcome-oriented. The SDGs broaden the ESG scope from risk management to value creation in financial, natural and social capital."