There are significant challenges in our world today, ranging from deep income-inequality to climate change. There are also advances in understanding and analysis that allow us to take a pragmatic approach to a critical but seemingly elusive question: how can we leverage capital markets to improve not just risk-adjusted returns, but our society as a whole? In other words, how can we create sustainable value?
To answer to this question, State Street conducted a global survey of almost 600 institutional investors who are, or are planning to implement Environmental, Social and Governance into their investment process. In this study, they also surveyed 750 individual investors, including both ESG and non ESG investors, and interviewed 25 executives. The goal is to provide a pragmatic approach to ESG integration that delivers on the principle of sustainable value creation through risk-adjusted returns.