A new survey published by the Morgan Stanley Institute for Sustainable Investing and Bloomberg highlights a significant rise in sustainable investing activity.
Out of the 402 individuals at US asset management firms surveyed, 89 percent were familiar with sustainable investing and 65 percent currently practice it.
Of respondents already engaged in sustainable investing, 54 percent plan new ESG strategies in the next 12 months.
Even among respondents at firms that do not practice sustainable investing, more than half believe adoption will increase in the next five years.
Client demand was highlighted as the primary driver for sustainable investment, alongside potential performance benefits, including managing ESG risk and identifying sustainability-driven opportunities.
As a result, managers and analysts are seeking more transparent and actionable information to enable better investment decision-making.