One in three U.S. investors in a survey released Monday by Newton Investment Management said they wanted their fund managers to actively engage with management of companies with sustainability issues rather than invest just in sustainable ones.
This preference showed up a stark difference between generations, with 43% of millennials wanting engagement versus only 19% of investors older than 50.
“We believe that ESG is not a label, it’s finance 101,” Andrew Parry, head of sustainable investment at Newton Investment Management, said in a statement.
“That is, environmental, social and governance insights are not add-ons, but part of the mosaic of inputs that influence good investing decisions. That’s a message that’s resonating more and more with investors, and one we believe the study findings help to underscore.”
Oxford Risk designed and conducted an online survey on the firm’s behalf in September and then analyzed responses from 1,000 individuals investors in the U.S. and 1,000 in Canada, 18 and older, with household investable assets ranging from $40,000 to $4 million.
Newton Investment Management is a subsidiary of BNY Mellon Investment Management.
When it comes to ESG, the study’s findings ran counter to where the bulk of the asset management industry’s focus has historically been, on governance.
Thirty-nine percent of U.S. investors expressed most concern about environmental issues, followed by 28% who expressed concern about social issues.
Twenty-three percent of American respondents cited governance concerns.