ESG initiatives have reached unprecedented levels in EMEA amidst challenging political and economic conditions worldwide.
- A significant 94% of surveyed investors in the EMEA region are now incorporating ESG strategies.
- EMEA leads global ESG adoption, with the Asia-Pacific and North America regions maintaining steady engagement levels.
- Regulatory compliance is a primary driving force for ESG integration, highlighted by a German bank’s portfolio manager.
- The latest findings underscore a growing commitment to sustainable investing practices despite external pressures.
ESG (Environmental, Social, and Governance) initiatives have witnessed an unprecedented surge in adoption across the EMEA (Europe, Middle East, and Africa) region amidst challenging economic and political conditions worldwide. According to the latest ESG Global Study by Capital Group, an impressive 94% of respondents surveyed in 2024 in EMEA indicated their engagement with ESG strategies, marking a one percentage point increase from the previous year and a substantial rise from 87% in 2021.
The EMEA region now stands at the forefront of global ESG adoption, showcasing a higher commitment compared to other regions. In contrast, the Asia-Pacific and North America regions have maintained steady engagement levels with 93% and 75% respectively over the past year.
Nearly seven in ten surveyed (68%) identified regulatory compliance as the pivotal factor fueling ESG integration. This trend is further evidenced by statements from a portfolio manager at a German private bank, who noted the significant influence of EU regulations in shaping ESG practices. They commented, ‘under EU regulations, we now have…’ stressing the regulatory impetus.
The insights presented in the study underscore a marked trend towards sustainable investing practices. Despite the broader geopolitical and economic uncertainties, the commitment to ESG strategies within the EMEA remains resilient, highlighting both a forward-thinking approach and an inclination towards responsible investing.
The EMEA region’s steadfast commitment to ESG practices underscores a significant shift towards sustainable investing amidst global uncertainties.
