NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, March 13, 2017

Responsible investing, including the incorporation of environmental, social and governance (ESG) factors and ethical principles, is growing in importance in the alternative investment management industry, driven by ethical principles, constituent demands, and new business opportunities, according to a new survey conducted by the Chartered Alternative Investment Analyst (CAIA) Association, the global leader in alternative investment education, and Adveq, a global institutional private equity investor.

More than three quarters (77%) of respondents to the survey agree Responsible Investing¹ is more important than it was three years ago, while 78 percent anticipate it will be more important three years from now. Adoption of industry standards (71%), pressure from institutional investors (67%), and positive investment return outcomes (64%) will be the largest drivers of greater adoption of Responsible Investing and ESG approaches, according to survey respondents.

“Responsible investing seems to be at a tipping point right now. It is garnering increased interest and momentum, which will likely accelerate in the years to come,” said William J. Kelly, Chief Executive Officer of CAIA. “To support this demand, a more institutional infrastructure is needed including common standards, increased information and education.”