As part of the ESG Tracking Study we conducted two consumer focus groups. Our consumer focus groups identified some consistent barriers to investing according to ESG principles. We have summarise some of the key themes from the focus groups within our report, you can download a copy here. Below you can watch the relevant video clips.
Diversification: Consumers worry about limiting choice
Our consumer focus group attendees understood the concept of diversification and its importance as a principle of investing. They believe that ESG investing shrinks the investing universe, limiting the ability to diversify.
Credibility. Is it genuine or are companies “jumping on the bandwagon”?
Focus group attendees expressed scepticism about company efforts to ‘go green’
Fund manager credibility
Our focus group attendees expressed scepticism as to whether fund managers could be trusted to invest according to ESG principles or whether they would not simply chase returns.
Trust but verify
Our focus group attendees want trusted, independent sources to address the credibility issues above.
Client Demand: Doing good and doing well
Investors need to compromise/sacrifice
Sustainability: In the long run
The focus group discussed the ‘ethical’ course of action if a company is discovered to be acting in a way that does not meet the investors’ expectations.