As the integration of environmental, social and governance principles in portfolio construction continues globally, U.S. institutional investors are becoming more skeptical about how well such investments perform, according to a survey on responsible investing by RBC Global Asset Management.
Compared to 2019, the percentage of institutional investors who believe ESG-integrated portfolios are likely to perform as well as or better than non-ESG integrated portfolios has increased in Canada (97.5%, up from 90% last year), Europe (96% vs. 92%) and Asia (93% vs. 78%), RBC said in a press release.
At the same time, U.S. respondents have become more skeptical. Just 74%, down from 78% in 2019, believe integrated portfolios perform as well or better. And more than a quarter of U.S. respondents believe ESG-integrated portfolios perform worse, up from 22% last year.
[More: ESG assets expected to top $53 trillion by 2022: Celent]
Other key findings from the survey include: closer investor attention to supply chain risk, continued strong support for diversity and inclusion efforts, more interest in impact investing, greater demand for more climate-related investment solutions, and a continuing emphasis on anti-corruption efforts.
[More: Avoiding investments that are green in name only]