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Environmental impact is the #1 driver

Concerns over the environment dominate how analysts and clients think about ESG investing.

Concerns about the environment have been the primary driver of client interest in SRI funds to date. The 78% of clients interested in investment strategies that accommodate their environmental concerns is nearly double the 41% of clients focused on corporate governance. Traditional negative screens for organizations that deal in guns, tobacco, and gambling remain a concern for 38% of clients.

Unsurprisingly, the vast majority of financial advisors (81%) prioritize environmental impact above other SRI screening criteria. More than half also incorporate transparent corporate governance (55%) and labor conditions/employee workplace policies (51%) into their firms’ SRI screening criteria.