Most Investors Now Believe ESG Has a Positive Impact on Returns

The environmental, social and governance value proposition has become mainstream in developed markets and is accepted by managers and investors alike, according to Preqin. More significantly, it finds that a majority of investors and fund managers surveyed for its report, Future of Alternatives 2025, believe ESG policies have a positive impact on returns, with 83% of fund managers expecting ESG to be more important by 2025.

“Driven by regulations and investor demand, ESG investing has gone from being a niche market to the mainstream and has reached critical mass as of late 2020,” says Dave Lowery, Preqin head of research insights. “Industry professionals already see the relationship between positive impact and investment performance.”