Global Investors Embrace ESG Policies, Finds Deloitte/Tufts Survey

A recent survey conducted by Deloitte and The Fletcher School at Tufts University reveals a significant shift in the investment world, with 80% of global investors now implementing sustainable investment policies. This comprehensive study, spanning from January to December 2023, surveyed over 1,000 asset owners, managers, and advisers worldwide, indicating a robust move towards ESG (Environmental, Social, and Governance) considerations in investment decisions.

In stark contrast to just five years ago, when only 20% of investors had sustainable investment policies, the surge to 79% underscores a growing recognition of sustainability’s role in minimizing risks and seizing opportunities. This trend is particularly pronounced in the U.S., where 83% of investors now report having ESG policies, surpassing the global average and even their European counterparts, who stand at 75%.

Investors cite regulatory requirements, enhanced financial performance, and stakeholder influence as primary drivers for integrating sustainability into their portfolios. Notably, U.S. investors highlight talent retention as a significant motivator, reflecting a broader understanding of sustainability’s impact beyond traditional financial metrics.

Despite the progress, challenges persist, including the integration of ESG information and the consistency of ESG ratings. Investors call for clearer strategies from corporations and improved sustainability data reliability. The survey also points to a future where enhanced disclosure standards could bridge these gaps, fostering greater trust and standardization in ESG reporting.

As global and regional regulations evolve, including significant developments in India, the European Union, and the United States, the survey suggests a pivotal moment for sustainability in investment practices, offering a clearer path forward for investors committed to ESG principles.