Sustainable investing continues to gain widespread acceptance among institutional investors and full integration is projected to surge in the next five years, according to a new study conducted by Coalition Greenwich and commissioned by AGF Investments.

Results from the Coalition Greenwich Emerging Trends in Sustainable Investing Best Practices and Wildcards for Institutions Study shows nine out of 10 institutional investors in North America and Europe expect to be investing sustainably or working toward the goal of introducing sustainable investment practices into their portfolios within the next five years. In fact, implementing sustainable investing across portfolios with full integration is projected to grow to three times today’s level in five years.

“It is important to hear directly from institutional investors, and those in North America and Europe are clearly indicating that their interest in sustainable investing continues to grow,” said Karrie Van Belle, Chief Marketing & Innovation Officer, AGF Investments. “At AGF Investments, it is a priority to take what institutional investors have told us and ensure our investment capabilities and products continue to evolve to address their desired outcomes in key areas like supporting energy transition.”

The study explored the priority themes most often targeted by asset owners through thematic approaches showing that asset owners are focusing on energy transition, water services and climate adaptation. In fact, the energy transition at 34% is the area most targeted by assets owners through thematic funds. At the same time, participants from endowments and foundations, cited a commitment to diversity, equity, and inclusion as the top reason to increase their sustainable strategies.

The study also found that institutional investors are looking to integrate sustainability across asset classes. However, the motivation behind adopting sustainable investing practices differs with North American investors focused on improving risk-adjusted returns, and European investors focused on creating positive impact.

“The Coalition Greenwich study also shows some common trends and best practices are beginning to emerge that may make it easier for institutional investors of all types to confidently adopt sustainable investment strategies,” added Van Belle.

The trend toward full integration is picking up steam. Looking ahead five years, 63% of European institutions predict that sustainability will be integrated across their entire portfolio and in North America, 55% of institutions expect sustainability to be fully integrated within five years. Click here to view the full survey findings.

Methodology

From March through April 2023, Coalition Greenwich conducted 143 telephone and online interviews targeting corporate pensions, public pensions, and endowments and foundations based in North America and Europe to examine overall trends of investor intelligence on key aspects of sustainable investing and identify differing perspectives and approaches within it.

About AGF

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. Our companies deliver excellence in investing in the public and private markets through three distinct business lines: AGF Investments, AGF Private Capital and AGF Private Wealth.

AGF brings a disciplined approach focused on providing an exceptional client experience and incorporating sound responsible and sustainable practices across its businesses. The firm’s collective investment solutions, driven by its fundamental, quantitative and private investing capabilities, extends globally to a wide range of clients, from financial advisors and their clients to high-net worth and institutional investors including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.

Headquartered in Toronto, Canada, AGF has investment operations and client servicing teams on the ground in North America and Europe. With over $42 billion in total assets under management and fee-earning assets, AGF serves more than 800,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.

About AGF Investments

AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). The term AGF Investments may refer to one or more of these subsidiaries or to all of them jointly. This term is used for convenience and does not precisely describe any of the separate companies, each of which manages its own affairs.

Media Contact

Amanda MarchmentDirector, Corporate Communications416-865-4160amanda.marchment@agf.com

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