ESG Investing is More Common in Europe than in the US
A recent study conducted by Financial Analysts Journal, a publication published by the CFA Institute, finds out that ESG investing is a more popular practice in the European continent than the US.
According to the statistics from the study, 84% of European investment managers would consider ESG information in their investment portfolio, while 75% of respondents from the US would do the same thing. Of those who claimed to consider ESG factors, the prime reason for them to do so is that ESG information is essential to investment performance. 41% said that incorporating ESG information in their investment activities is a more ethical action, while only 19% of US respondents agreed to the statement.
In terms of methodology, negative screening (removing companies with low ESG performance) is a practice more prevalent than positive screening. However, the majority of the respondents agreed that the latter method will in the near future become the prioritized way of ESG investing.
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