The world of sustainable finance has always had to contend with certain obstacles that, at first glance, seemed truly hard to shake. Chief among them, the fear that investing one's savings in a conscious and responsible way towards the Planet and people was a sacrifice, in terms of returns. But when you speak to financial professionals, you discover that the vast majority of them have by now had to think again.

ESG, investors want the numbers

By surveying nearly six hundred institutional investors, a study commissioned by State Street Corporation finds that 92 per cent of them demand that companies explicitly identify the ESG factors (environmental, social and governance) capable of having a concrete impact on their performance. Six in ten complain about the lack of common standards for measuring performance in this field. An observation shared by retail investors too: nearly 46 per cent of those surveyed are calling for more ESG data, from both companies and independent sources, in order to make informed decisions.

Preconceptions about sustainable investments fade away

If the thirst for information that goes well beyond the usual financial data has grown so strong, it is because sustainable investments have by now left behind the prejudices that accompanied them for years. Only 35 per cent of institutional investors believe that taking ESG factors into account is equivalent to giving up part of their return. In fact, three in four are reasonably confident of achieving outperformance from their sustainable investments within three years at the latest. Only one in ten cites fiduciary duty as a possible barrier to sustainable investment.

Moreover, the data show that confidence is well placed. A colossal analysis of 2,000 academic studies shows that 9 in 10 analyses highlight a non-negative relationship between attention to ESG criteria (environmental, social and governance) and a company's financial performance. But there is more: in the majority of cases, a positive (and stable) impact on financial results is identified.

The State Street Corporation study

These data come from a study commissioned by State Street Corporation from its applied research centre. The co-author is Robert Eccles, visiting professor at the Saïd Business School at the University of Oxford. 582 institutional investors were surveyed (that is, banks, pension funds, insurance companies and so on) who have already incorporated ESG criteria into their investment decisions or intend to do so shortly. In addition to them, the research also involved 750 individual investors, whether or not aligned with ESG criteria.

State Street Corporation is a global giant in the world of financial services for institutional investors. It has 29 trillion dollars of assets under custody and administration and 2 trillion dollars of assets under management.