Does ESG Information Affect Individual Investors’ Portfolio Choices?

Socially responsible investing (SRI) involves considering environmental, social, and governance (ESG) issues when picking stocks.  Once a niche area of fund management, the volume of global sustainable investment in five major markets reached $35.3 trillion at the start of 2020, a 54.5 percent increase since 2016 and 35.9 percent of total assets under management.  Assets in sustainable investment products in Europe are expected to outnumber conventional funds as investors’ growing focus on material risks, including climate change and social inequality, pushes these strategies into the mainstream.  In the U.S., more than eight in 10 individual investors (85 percent) express interest … Read more