See coverage in Carbon Pulse, Ignites Asia, Tagesspiegel Background, Sustainable Brands
This is a key finding of a global survey undertaken by GlobeScan and InfluenceMap of retail investors and what they want from their fund managers on climate and sustainability issues.
Other key findings include:
The survey of nearly 5,000 retail investors (defined as those who own and invest in stocks, bonds, funds, or who participate in company or government pension or retirement schemes) in ten countries and territories (Australia, Canada, France, Germany, Hong Kong, Italy, Japan, Singapore, UK, and the USA) was conducted in July and August of 2023 and shows that retail investors in the ten markets surveyed express similarly high levels of support for investment funds becoming more active in the climate space.
Investors in Germany are particularly prone to strongly support investment funds taking an active role in addressing climate change, while support is somewhat weaker in the Asian markets surveyed (Hong Kong, Japan, and Singapore).
The report also found:
Daan Van Acker, Program Manager at InfluenceMap said:
“GlobeScan’s research shows the extent of retail investors’ demand for ambitious climate action by their fund and pension managers. This stands in stark contrast to InfluenceMap’s findings that the world’s 45 largest asset managers are investing almost three times more assets in fossil fuel companies than green ones, while the proportion of managers with ambitious investee company stewardship has almost halved since 2021.
These asset managers, while holding significant influence over sustainable finance policy, are not engaging to support it, either in the US or the EU. In fact, 86% of the fund management firms we assessed are members of industry associations that are strategically opposing sustainable finance policy globally.
If these fund managers are to meet expectations of their retail investor clients, it’s time for them to match their top-line statements with ambitious action on climate.”
Chris Coulter, CEO of GlobeScan said:
“Not nearly enough attention is being paid to the hopes, values and expectations of retail investors, the owners of so many assets across the world. This research showcases the opportunity for asset managers to be much more responsive to their investor base and shift their investment strategies towards more low carbon, nature positive and inclusive investments."