Morgan Stanley and Bloomberg Survey Finds Sustainable Investing Has Entered the Mainstream

Two-thirds of asset management professionals surveyed (65%) say that they are using sustainable investing strategies to achieve competitive market-rate financial return alongside positive social and/or environmental impact. Sixty-four percent believe its adoption will continue to grow, according to a new survey published today by the Morgan Stanley Institute for Sustainable Investing and Bloomberg L.P. The new Sustainable Signals: The Asset Manager Perspective report examines the practices and perspectives of asset managers on sustainable investing and offers insights and action steps for asset managers and asset owners interested in pursuing sustainable investing strategies. The survey results indicate that this surge in sustainable investing activity has been spurred by rising investor demand and media coverage, resulting in a proliferation of new products from both specialist and mainstream asset management firms.

“Sustainable investing continues to make significant inroads in the broader investment community, led by individual and institutional investor demand for products that effectively and credibly deliver both financial and social returns,” said Audrey Choi, CEO of the Morgan Stanley Institute for Sustainable Investing. “However, as the market grows, it’s imperative we empower asset owners and asset managers with information and insights that enable them to combine the best of traditional investing practices with rigorous and material environmental, social and governance considerations.”

Sustainable Investing Trends at a Glance

Among 402 individuals surveyed at U.S. asset management firms:

• 89% are familiar with sustainable investing
• 65% practice sustainable investing
• 64% surveyed believe its adoption will continue to grow

Yet:

• 62% say proof of financial performance by sustainable investing products would increase firm’s commitment
• 55% say the field lacks credible data to inform decision making
• 51% are confident they can explain the non-financial impacts of sustainable investing to clients

“At Bloomberg, we see broader interest in sustainable investing approaches among asset managers, who are adopting new analytical approaches and differentiating their investment products. This shift is driven by both client demand and potential benefits for manager performance, both to manage ESG risk and identify sustainability-driven opportunities,” said Curtis Ravenel, Global Head of Sustainable Business and Finance at Bloomberg LP. “As a result, managers and analysts are definitely starting to demand more transparent and actionable information to enable better investment decision-making.”

For more information, please see Sustainable Signals: The Asset Manager Perspective.

The Morgan Stanley Institute for Sustainable Investing

The Morgan Stanley Institute for Sustainable Investing builds scalable finance solutions that seek to deliver competitive financial returns while driving positive environmental and social impact. The Institute creates innovative financial products, thoughtful insights and capacity building programs that help maximize capital to create a more sustainable future. For more information about the Morgan Stanley Institute for Sustainable Investing, visit www.morganstanley.com/sustainableinvesting.

Morgan Stanley

Morgan Stanley (NYSE:MS) is a leading global financial services firm providing investment banking, securities, wealth management and investment management services. With offices in more than 43 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.

Bloomberg

Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company’s strength – delivering data, news and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Professional service, which provides real time financial information to more than 325,000 subscribers globally. For more information, visit http://www.bloomberg.com/company/ or request a demo.

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