Smart Sustainability: Examining regional appeal

There is rising interest in investment strategies with an environmental, social and governance (‘ESG’) focus. At the same time, asset owners are allocating steadily higher portfolio weightings to non-market-capitalization (‘smart beta’) index-based strategies.

Unsurprisingly, therefore, investors tell us that they are interested in combining ESG with smart beta, a practice we’ve named Smart Sustainability

But there are marked regional differences in ESG adoption. European asset owners have much higher rates of ESG implementation than their North America counterparts. Why do these regional differences exist? What are investors’ motivations for applying ESG considerations, and which ESG issues are they considering when combining smart beta and ESG? How much demand will there be for this type of combined portfolio approach?

In this FTSE Russell Insight we address these questions, drawing upon our analysis of asset owners’ responses to our latest (2019) annual smart beta survey.

Read the complete white paper at the link beneath Related Files

Supporting documents

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