Looking for the Best of Both Worlds

In fact, professional investors believe ESG has the potential to support both sides of the risk/return equation. Six in ten professionals also believe there is alpha to be found in ESG. But in an age of heightened regulation and increased public scrutiny, the professionals also believe these strategies can mitigate exposure to governance and social risks not captured in traditional analysis.

Individual investors share a similar perspective: More than half (56%) of those surveyed believe that all things being equal, companies that demonstrate a higher level of integrity will outperform similar companies that do not. This is an important consideration, since half
of investors say they are not willing to give up investment performance in order to align their assets with their values.