Enthusiasm for sustainable investing is surging. Already, more than $8.7 trillion of investment capital is managed using environmental, social and governance (ESG) factors in U.S. markets alone, according to the U.S. SIF Foundation. That’s a 184 percent increase since 2010. This pot of money increasingly includes investments in green infrastructure, renewable energy, affordable housing and more, as well as investments that more holistically integrate broad ESG factors. However, amidst this hype, a certain amount of confusion, doubt and outright skepticism endures.
In producing WRI’s new paper, Navigating the Sustainable Investment Landscape (pdf), WRI interviewed 115 investment professionals – including asset owners with $1.26 trillion under management – and found that the prospects for sustainable investing are strong and overcoming key roadblocks will help the market reach a tipping point.
Here, WRI debunks four of the most common myths WRI encountered in their research:
Myth 1: Sustainable investing sacrifices returns.
Myth 2: Sustainable investing violates fiduciary duty.
Myth 3: Sustainable investing is risky in uncertain markets.
Myth 4: Sustainable investing is unfeasible.
