2021 ESG Survey

2021 ESG Survey

2021 ESG Survey | Executive Summary

On the 2nd of August 2022, MiFID and sustainability regulations will require European financial advisors to discuss sustainability preferences with their clients. A new Nordea Asset Management survey found that despite 71% of investors planning to increase their ESG allocation over the next year, 62% have not received an ESG proposal from their financial advisor in the past 12 months. We gathered the views of 1,200 European individual investors from Germany, Spain, Italy, France and Switzerland. All survey participants currently use a financial advisor. The findings suggest that many financial advisors have not yet fully embraced the ESG opportunity in the context of the upcoming regulation.

Are advisors ready for the MiFID and ESG challenge?

Clients now recognize sustainability as a financial risk
  • 89% consider sustainability a challenging issue for society
  • 77% believe their investment decision could make a difference in creating a more sustainable society
  • 69% are aware that challenges around sustainability can impact their investments
ESG clients are hungry for more 
  • 76% have increased their ESG investment in the past 12 months
  • 72% are satisfied with the performance of their ESG investment
  • 71% plan to increase their ESG allocation over the next 12 months
Climate change is still in focus but social challenges are the next trend 
  • 63% consider global warming to be their primary concern
  • 55% believe climate change will be the most investable megatrend over the next 5 years
  • 45% of Gen Zs selected human rights as the most investable megatrend over the next 5 years (only 34% chose climate change)
Advisors play a crucial role, but they haven’t kept the ESG – MiFID pace
  • 73% identified their advisor as their main source of ESG information
  • 96% of investors trust that advisors know about ESG
  • 62% has never received an ESG proposal from their advisor. With new changes to MiFID II coming into force next year, this is a huge opportunity
Advisors should up their game to be ready for the new MiFID and ESG challenges 
  • 39% of clients surveyed identified a lack of knowledge and expertise as the greatest hurdle to ESG investing
  • 81% say they need clearer and simpler explanation of ESG products
  • 73% want new ESG products which, according to the new regulations, must be MiFID-eligible

Nordea Asset Management is the functional name of the asset management business conducted by the legal entities Nordea Investment Funds S.A. and Nordea Investment Management AB (“the Legal Entities”) and their branches and subsidiaries. This document is advertising material and is intended to provide the reader with information on Nordea’s specific capabilities. This document (or any views or opinions expressed in this document) does not amount to an investment advice nor does it constitute a recommendation to invest in any financial product, investment structure or instrument, to enter into or unwind any transaction or to participate in any particular trading strategy. This document is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instruments or to participate to any such trading strategy. Any such offering may be made only by an Offering Memorandum, or any similar contractual arrangement. Consequently, the information contained herein will be superseded in its entirety by such Offering Memorandum or contractual arrangement in its final form. Any investment decision should therefore only be based on the final legal documentation, without limitation and if applicable, Offering Memorandum, contractual arrangement, any relevant prospectus and the latest Key Investor Information Document (where applicable) relating to the investment. The appropriateness of an investment or strategy will depend on an investor’s full circumstances and objectives. Nordea Investment Management AB recommends that investors independently evaluate particular investments and strategies as well as encourages investors to seek the advice of independent financial advisors when deemed relevant by the investor. Any products, securities, instruments or strategies discussed in this document may not be suitable for all investors. This document contains information which has been taken from a number of sources. While the information herein is considered to be correct, no representation or warranty can be given on the ultimate accuracy or completeness of such information and investors may use further sources to form a well-informed investment decision. Prospective investors or counterparties should discuss with their professional tax, legal, accounting and other adviser(s) with regards to the potential effect of any investment that they may enter into, including the possible risks and benefits of such investment. Prospective investors or counterparties should also fully understand the potential investment and ascertain that they have made an independent assessment of the appropriateness of such potential investment, based solely on their own intentions and ambitions. Investments in derivative and foreign exchange related transactions may be subject to significant fluctuations which may affect the value of an investment. Investments in Emerging Markets involve a higher element of risk. The value of the investment can greatly fluctuate and cannot be ensured. Investments in equity and debt instruments issued by banks could bear the risk of being subject to the bail-in mechanism (meaning that equity and debt instruments could be written down in order to ensure that most unsecured creditors of an institution bear appropriate losses) as foreseen in EU Directive 2014/59/EU. Nordea Asset Management has decided to bear the cost for research, i.e. such cost is covered by existing fee arrangements (Management-/Administration-Fee). Published and created by the Legal Entities adherent to Nordea Asset Management. The Legal Entities are licensed and supervised by the Financial Supervisory Authority in Sweden and Luxembourg respectively. A summary of investor rights is available in English through the following link: https://www.nordea.lu/documents/engagement-policy/EP_eng_INT.pdf/. The Legal Entities’ branches and subsidiaries are licensed as well as regulated by their local financial supervisory authority in their respective country of domiciliation. Source (unless otherwise stated): Nordea Investment Funds S.A. Unless otherwise stated, all views expressed are those of the Legal Entities adherent to Nordea Asset Management and any of the Legal Entities’ branches and subsidiaries. This document may not be reproduced or circulated without prior permission. Reference to companies or other investments mentioned within this document should not be construed as a recommendation to the investor to buy or sell the same but is included for the purpose of illustration. The level of tax benefits and liabilities will depend on individual circumstances and may be subject to change in the future. © The Legal Entities adherent to Nordea Asset Management and any of the Legal Entities’ branches and/or subsidiaries.

Country selection

For more information about products in your area, please select a country below:

Disclaimer

The information contained in these webpages is solely intended for professional clients.

Data, information and potential objectives released on these webpages are provided for information only.

Nothing in the information contained on these webpages shall be construed as an investment advice from NAM or any of its affiliated companies. The content of these webpages does NOT constitute i) a recommendation to invest in any financial instrument, financial product, investment structure or instrument, ii) tax or fiscal advice, to enter into or unwind any transaction or to participate in any particular trading strategy and (iii) substitute for user’ own research or their technical and/or business judgement based on their personal situation. These webpages are not an offer to buy or sell any security.

All publications, press release and other material including but not limited to video, brochure presented or released on these webpages are presented “as is” and to the best of NAM ́s knowledge when issued.

By clicking on “Proceed” I confirm that I am a professional client and I have read, understood and accept the General Terms and Conditions and the Privacy Policy for this website.
 
*A Professional client within the meaning of the Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 as amended.