Environmental, Social, and Governance (ESG) investing is rapidly gaining traction in the investment community. It is an investment approach that takes into account a company’s environmental and social impact and governance structure when making investment decisions. The goal of ESG investing is to achieve not only financial returns but also positive societal and environmental outcomes. This study aims to examine the level of awareness and use of ESG investing among investors.
This survey was conducted among 58 investors of different ages, gender, and income levels. The survey was conducted online using Google Forms, and consisted of multiple-choice questions.
The survey found that 84% of respondents were aware of ESG investing, and took it into account when making decisions on where to invest. Governance was the most popular out of the three sectors and had 85% of investors considering it. Most investors (54%) use ESG metrics on a case-by-case basis, and primarily for the private equity asset class.
The primary reasons cited by respondents for investing in ESG funds were to help manage investment risks (52%), as a proxy for management quality (52%), and because clients demand it (41%). A majority of investors (64%) used reports and statements from the company to inform their decisions and used third party research to identify ESG issues.
In conclusion, CSR is incredibly important in today’s business landscape. Despite displaying multiple benefits such as enhanced brand reputation, employee satisfaction, cost savings and access to new markets, it also causes businesses to face challenges such as balancing profitability and social responsibility, measuring impact, and ensuring that ethical integrity exists. Addressing these challenges requires a strategic approach that aligns CSR with business objectives while prioritising ethical responsibilities.
Miss Himani Miglani
