The environmental, social and governance value proposition has become mainstream in developed markets and is accepted by managers and investors alike, according to Preqin. More significantly, it finds that a majority of investors and fund managers surveyed for its report, Future of Alternatives 2025, believe ESG policies have a positive impact on returns, with 83% of fund managers expecting ESG to be more important by 2025.
"Driven by regulations and investor demand, ESG investing has gone from being a niche market to the mainstream and has reached critical mass as of late 2020," says Dave Lowery, Preqin head of research insights. "Industry professionals already see the relationship between positive impact and investment performance."
Only 20% of fund managers surveyed believe ESG policies have a negative impact on returns.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
