Pandemic leads to growing ESG awareness
Home >
All >
Pandemic leads to growing ESG awareness
The inclusion of ESG (environmental, social and governance) issues within mainstream investment strategies has been gaining in prominence during the pandemic, according to new research – and it’s a trend that’s set to continue.
The global rise of ESG – a megatrend here to stay
ESG investment has been increasingly catching the interest of investors across the globe for several years now, due to consumers’ growing desire to know where their money is being invested and the wider social and environmental impact it is having. In fact, according to a recent survey from CoreData, 75% of professional fund buyers believe that all investment funds will be incorporating ESG factors into their strategies within the next five years.
The COVID effect
The survey also found that the rise of ESG investment has been accelerated by the pandemic, with 80% of UK fund investors saying it has led them to focus more on ESG. Founder and principal of CoreData, Andrew Inwood, commented: “The pandemic has helped reset humanity’s moral compass and encouraged people to favour investments aligned with their beliefs and values.”
COP26 will keep fire burning
Environmental factors such as pollution, waste and climate change are among ESG investors’ biggest concerns, according to research*. This is likely to mean that coverage of the 26th UN Climate Change Conference of the Parties (COP26), to be held in Glasgow this November, will further boost interest in ESG investing. Across the pond, new US president Joe Biden has committed to an ambitious new climate regime, which is also expected to raise climate change and the COP26 conference higher on the world agenda. Yet another reason why ESG is set to be a watchword for 2021 and beyond.
*BlackRock, 2020
It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency.
Information is based on our understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.
Tax treatment is based on individual circumstances and may be subject to change in the future.
Other Insights of interest
20th May, 2025
Positioning portfolios in a protectionist world
US Vice President JD Vance spelled it out in Munich – “there is a new…
Read full insight
20th May, 2025
Navigating uncertainty together
Over the past five years, we’ve experienced a global pandemic, geopolitical conflicts, political upheaval and…
Read full insight
14th May, 2025
Investment megatrends for 2025 and beyond
Investing megatrends are powerful, long-term shifts expected to reshape industries, economies and investment markets on…
Read full insight
14th May, 2025
IHT receipts continue their ascent
HM Revenue and Customs (HMRC) data shows IHT receipts topped £6.3bn in the eight months…
Read full insight