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Investor ESG preferences not aligned with current portfolios

ESG investingDespite the rising demand for sustainable investing, investors are not confident that their current portfolios are aligned with their ESG values, a Capital Preferences study has found.

The 'ESG is Personal: 2021 Study of ESG Preferences and Advisory Practices' report found that just 25% of UK investors were confident their current portfolio was fully aligned with their value.

According to the report, the UK has the largest share of investors with more than 40% invested in ESG funds, compared with 40% of US investors.

Many investors, however, admitted that they lack the confidence to put their ESG preferences into practice because of confusing terms and concepts, conflicting ratings and a lack of guidance on how to identify the right investments.

Co-founder and group CEO for Capital Preferences, Bernard Del Ray, said “Many investors intend to invest sustainably, but lack the specific knowledge of how to do so. The financial industry can use technology to transform investor profiling and help investors realise performance-driven ESG investing that is more closely aligned to their personal beliefs and preferences.”

© 2021 funds europe.