German investors shift towards sustainable investments
The majority of German institutional investors is now including sustainable investment strategies to their portfolio, a recent Union Investment survey reveals.
The poll, conducted among 200 German institutional investors between February and April 2015 revealed that 58% are now considering sustainable investment criteria in their asset allocation. The numbers increased from 56% last year and 48% in 2013.
The survey also highlighted that a majority of 56% of those who do select sustainable investment strategies is satisfied with the decision, most investors don’t see lower returns in sustainable investments and 18% of respondents even report higher returns for sustainable investment strategies.
“The results show that despite some reservations, the overall acceptance of sustainable investment strategies is growing, for many institutional investors, sustainability is now a stable element of their portfolio” says Alexander Schindler, head of Institutional Clients at Union Investment.
At the same time, the survey also pointed out that 42% of investors are not including sustainable investment strategies to their portfolio. Among those, 57% says that this is due to a lack of regulatory guidance, 47% say that there is insufficient demand from their boards and 39% state that there is insufficient client interest.