The vast majority (90 per cent) of institutional investors say they’re planning to increase allocations to sustainable and impact investments over the next five years, according to a survey by Cambridge Associates.
The survey, which polled more than 140 institutional investors, found two-thirds (65 per cent) of respondents reported engaging in sustainable and impact investing, up significantly from 36 per cent in 2018.
Among these respondents, more than half (55 per cent) said more than five per cent of their long-term investment pool is allocated to sustainable and impact investment strategies and 88 per cent said they’ve increased their allocations to these strategies in the past five years.
Three-quarters (76 per cent) of these respondents cited employing impact investing as an investment strategy, up from 59 per cent in 2020, and nearly two-thirds said they consider social and/or environmental equity in investment decision-making. A fifth (17 per cent) of these respondents said they anticipate considering these factors in the future.
Among respondents that aren’t currently engaged in sustainable and impact investing, more than two-fifths (45 per cent) said they anticipate seeking exposure.