Recent policy action has increased transparency and consistency in data, resulting in more investor awareness and scrutiny.
POLICY AND REGULATORY
CHANGES
Policy and regulatory changes
INVESTMENT AVAILABILITY
The supply of sustainable investment opportunities is rising, corresponding to increasing demand, and spurring additional supply.
Investment Availability
RETURN POTENTIAL
Companies with higher ESG ratings tend to be more competitive, with greater profitability and better risk controls, driving strong returns.
This has been particularly true in our rapidly changing world, where global forces such as population growth, depletion of natural resources and climate change create new risks and opportunities in markets.
Return potential
INVESTOR AND CONSUMER PREFERENCES
More consumers and institutions are asking companies to be socially and environmentally responsible.
They are voting with their dollars — paying a premium for products and brands that invest thoughtfully.
Investor and consumer preferences
Source: Morningstar Direct, as of December 31, 2021.
Source: Whelan (NYU Stern) et al, “ESG and financial performance: uncovering the relationship by aggregating evidence from 1,000 plus studies published between 2015 – 2020,” February 10, 2021.
Source: IBM Research Insights, “Meet the 2020 consumers driving change,” June 2020.