A recent survey sheds light on investor attitudes about ESG issues. Because ESG considerations continue to gain acceptance in investment management, CFA Institute conducted a survey from 26 May to 5 June 2015 to learn more about member perceptions and practices regarding ESG issues. Out of the 44,131 CFA Institute members working as portfolio managers and research analysts who were invited to participate, we received 1,325 valid responses.

  • ESG issues are taken into consideration by 73% of survey respondents, with governance issues being rated as most important.
  • The most common reasons to take ESG issues into consideration are to manage risks (63%) and to meet demand from clients (44%).
  • The most frequently used sources of information are in the domain of public information, followed by thirdparty research and company reports and statements.
  • A majority of respondents (61%) agree that public companies should be required to report at least annually on a cohesive set of sustainability indicators.
  • A majority of respondents (69%) think it is important that ESG disclosures be subject to independent verification.

By: Usman Hayat, CFA, is director of Islamic Finance and ESG at CFA Institute

Read this article at CFA Institute Magazine, September/October 2015, Volume 26 Issue 5, here