JTC Releases Second Annual Survey on Evolution of ESG and Impact Investing
March 29 2023 - 10:00AM
Business Wire
Despite “anti-ESG” media discourse, findings indicate that
perceptions of ESG and impact investing remain positive – though
most remain confused about the differences between the two terms
and various reporting frameworks
Drawing on feedback from nearly 300 advisers, fund managers, and
investors across the U.S. and Europe, a new research report
published by JTC – in collaboration with OpportunityDb – provides
fresh insights into ESG and impact investing perceptions,
challenges, and goals in 2023.
“As this burgeoning sector comes under heightened scrutiny,
confusion over the fundamental differences between ESG and impact
investing speak to broader issues highlighted by this year’s survey
– around measuring impact, understanding various reporting
frameworks, and meeting particular investors’ preferences,” said
Reid Thomas, Chief Revenue Officer of JTC. “What’s clear is that
amid proliferating offerings, the focus on particular,
differentiated, and outcome-oriented impacts that meet investors’
personal values and passions will be critical.”
Key findings of this year’s research report include:
- Perceptions of ESG and impact investing are overwhelmingly
positive. Nearly three-fourths of total respondents incorporate
ESG metrics and standards into their investment strategy more than
half the time, and most also agree that accepting a lower financial
return isn’t usually necessary for achieving high social
impact.
- Most respondents believe impact investing and ESG investing
are the same. The findings reflect a persistent confusion
around the differences between the two terms as both gain
increasing traction in the marketplace – suggesting the need for
more clarity, transparency, purposeful measurement, and focus.
- Impact investors have a wide range of different passions,
meaning personalization is key. When asked about the best
markers of social impact responses were fairly evenly spread across
numerous indicators, from internet accessibility to improved access
to healthcare to a decrease in food deserts and crime.
- Reporting remains a fundamental challenge, with slow
movement towards standardization. Less than a third of
respondents find impact investing reporting easy. Top challenges
include a lack of defined standards, access to data, and evolving
to regulations.
- Opportunity Zones continue to gain momentum. Investors
are interested in a wide range of OZ funds, from real estate to
operating businesses to energy, and most describe it – accurately –
as both a tax incentive and economic development tool.
The full research report – available for free download here –
unpacks the above findings and provide a set of best practices for
investors, advisors, and fund managers to plan, implement and
measure during another crucial year of ESG and impact
investing.
ABOUT JTC
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with deep expertise in fund, corporate and private client
services.
Every JTC person is an owner of the business and this
fundamental part of our culture aligns us with the best interests
of all of our stakeholders.
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capabilities that drive efficiency and add value.
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Laura Kelly Vice President, Marketing, JTC Americas T:
408.367.0826 M: 408.564.9239 E: Laura.kelly@jtcgroup.com