AIC’s ESG Attitudes Tracker reveals a decline in ESG considerations for the third consecutive year.
- Only 48% of clients now consider ESG factors, down from 66% in 2021.
- The proportion of self-proclaimed ESG ‘fans’ has decreased to 43%.
- Clients are increasingly sceptical about ESG’s impact on performance, with only 17% seeing potential improvements.
- The term ‘woke’ is increasingly associated with ESG, affecting its perception among investors.
The Association of Investment Companies (AIC) has released its annual ESG Attitudes Tracker, revealing a continued decline in ESG considerations among investors for the third year running. The report indicates that only 48% of clients now factor in Environmental, Social, and Governance (ESG) elements when making investment decisions, a noticeable drop from 66% in 2021.
The findings highlight a significant decrease in the number of clients who consider themselves ‘fans’ of ESG investing, with figures dropping from 60% in 2021 to 43% in the latest survey. This downward trend suggests a waning enthusiasm for ESG principles amidst changing market and societal attitudes.
Moreover, there is an increase in scepticism regarding the performance benefits of ESG investing. Presently, just 17% of respondents believe that ESG factors are likely to enhance investment returns, a fall from 22% recorded the previous year. This growing doubt among investors possibly stems from perceived inconsistencies in ESG’s financial impact.
In addition, the survey uncovers a shifting sentiment towards ESG terminology. A substantial 66% of participants now associate ESG with being ‘woke’, a term which could carry negative connotations in investment circles. This identification might influence the overall perception and adoption of ESG practices among traditional investors.
The AIC’s report underscores a shifting landscape in ESG investment attitudes, marked by scepticism and changing perceptions.
