More than half of investors see climate change as the most important factor affecting their investment decisions, according to the latest ESG customer survey of Deutsche Bank’s Chief Private Banking Investment Office.
According to the 2022 survey, which surveyed 900 clients of its private and investment banking division worldwide between the end of July and August this year, 53% of investors consider climate change to be the most important factor affecting their decisions. investment, compared to 47% previously. Last year. Other environmental issues were less important to investors, such as land degradation (21%), ocean pollution (15%) and biodiversity loss (7%).
The report also revealed that 78% of retail and business clients surveyed are concerned about the negative impact of climate change on the global economy, up from 74% in 2021.
“What’s most interesting about this year’s findings is that customer expectations of ESG are increasing, not decreasing, even as the ESG universe reorients itself through debate and development and as volatility persists in capital markets,” said Markus Muller, Head of ESG at Deutsche Bank Private Banking. investment officer and head of the chief investment office.
Exactly half of investors surveyed consider environmental issues the most important pillar of ESG investing, up from 46% last year, while 28% believe governance issues are most important.
Meanwhile, social issues were considered most important by 23% of investors, up from 27% in 2021.
The percentage of respondents who think ESG can be used to sufficiently manage risk in a portfolio has decreased to 44% this year, from 48% in 2021.
Another four in 10 respondents said they don’t know or are neutral on the subject, while 16% strongly or slightly disagree that ESG can be used for portfolio risk management.
The survey also revealed that investors are turning to financial institutions to help them manage the transition journey.
Nearly 70% of investors surveyed expect their financial institution to accurately measure and manage nature-related risks, while 75% expect appropriate portfolio protection.
“But financial institutions can only be a driving force, alongside individual investors, businesses and governments, of needed economic change,” Deutsche said in its report.
“Among other things, greater knowledge of investors is needed to achieve this goal.”