Sustainability (ESG) has become an important trend on both the demand and supply side of the market. As a result, 75% of the respondents offers sustainable investing as a service today. This growth tempo will maintain in the coming years, as sustainable investing will be fully integrated in the asset and fund management sector, says Pieter Furnée, Global Head of Responsible Investing Coverage at DWS. Investors will base their decision on risk, profit, cost and SRI/ESG criteria.
An explanation for that growth? All investors, both private and institutional investors, are long-term investors. But they are becoming increasingly concerned about that long term. Pieter Furnée: Sustainability is about a healthy balance between short-term profit and maintaining assets in the long term. We see that investors are increasingly looking to shift from doing no harm to doing good.
In addition, the regulator is working on an EU action plan for sustainable financing. The goal? To re-orientate the capital flows towards sustainable investments and to realise inclusive growth, says Pieter Furnée. The changing regulations climate will be a strong driver for further ESG growth.
The changing regulations climate will be a strong driver for further ESG growthPIETER FURNÉE
Also stewardship is becoming increasingly important. DWS strives for entering, maintaining and developing true partnerships not just with its clients, but also with the broader communities and societies in which we live and work, concludes Pieter Furnée. Active stewardship via a constructive dialogue, the involvement of companies and the right implementation of voting rights, all play an important role in the fulfilment of fiduciary responsibilities.