GLOBAL - Socially responsible investing (SRI) practices are increasing in popularity with the majority of investment managers world wide expecting SRI to become a common component of mainstream investment processes within 10 years.
According to Mercer IC, 89% of managers predict that active ownership will be a mainstream practice within 10 years.
In addition, 73% predict that the incorporation of social and/or environmental corporate performance indicators will become mainstream within 10 years; and 65% predict that positive or negative screening will be mainstream.
Mercer IC asked 195 managers in Asia, Australia, Canada, Pan-Europe and the US with combined assets of US$30.5trn for their views on SRI as part of the 2005 Global Fearless Forecast survey.
“In the past, it was just a small group of organisations that were interested in SRI, but there are a growing number of mainstream investors who believe these issues can have an impact on long-term investment performance,” said Tim Gardener (pictured), global leader of Mercer IC. “Investment managers’ views are clearly changing.”
Managers in the US were most sceptical with more than 60$ saying they believe that screening and the integration of social and/or environmental factors will never become a mainstream investment practice.
In comparison, more than 8 in 10 (85%) of Asian and Australian managers predict that all three SRI-related practices will become mainstream within 10 years.
European managers predicted the most short-term activity will be seen in relation to integration of social and/or environment criteria, and positive and negative screening, Mercer IC said.
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