CFA Institute's recent survey on 645 of its members (42% PMs|16% Consultants|7% Corporate Financial Analysts) in the EU (34% UK|12% Germany|12% Netherlands) on the proper role of ESG factors in the investment process revealed these and other noteworthy results:
- 85% of respondents agreed or strongly agreed that it is appropriate for institutional investors (e.g., pension funds) to take ESG factors into account when making investment decisions.
- 66% of respondents overall (78% Luxembourg|71% UK|69% Germany) don't think it is appropriate for regulators to require ESG factors specifically to be considered in their analysis, and believe that this determination should be left to investment professionals and their clients.
- Views as to whether it is appropriate for regulators to legislate that ESG considerations be an integral part of the legal fiduciary duty owed to investment management clients were very mixed, with 24% believing it is appropriate to a great extent, 24% believing it is not at all appropriate, and the balance of respondents' views falling in between those extremes.
- 45% of respondents think an E&S sustainability label or rating (similar in concept to a credit rating) created by a regulatory body for all investment products would be desirable; 18% think it would be desirable just for retail products; and 37% don't think it would be at all desirable.
- 41% of respondents don't believe that regulators should determine a taxonomy or classification of sustainable activities; another 35% believe regulators should determine a taxonomy, but that its use should be voluntary.