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HSBC ESG Survey: Regulations Driving ESG Adoption

According to HSBC’s newly released ESG Sentiment Survey, the adoption of ESG continues to rise in response to regulatory pressure and investor demand.

Respondents from nearly 400 institutions representing over $11.5T in assets weighed in on the state of ESG:

“Regulations are becoming a bigger driver for investors and corporates to integrate ESG,” noted Wai-Shin Chan, Global Head of ESG research at HSBC. “Regs are moving from being a gentle nudge to a stronger push.”

What Does This Mean for Investors?

While statistics show that ESG is in high demand among US investors, there is clearly a wide range of understanding and integration when it comes to ESG and portfolio deployment. At a global level, the story is different: asset owners and managers are much more fluidly integrating ESG. Investors are increasingly able to access funds and fixed-income vehicles with ESG research baked in.

What Should Financial Advisors Do?

Discuss ESG vehicles with fund distributors and get a clear understanding of the type of product that’s available. If you construct portfolios in-house, be prepared to explain why – or why not – ESG is a part of your due diligence process.

If you need materials that will help you communicate with clients about ESG, check out our Digital Products.

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