Growing focus on ESG has potential to change financial planning role | BenefitsPRO

Growing focus on ESG has potential to change financial planning role | BenefitsPRO

Bloomberg projects that asset managers will dedicate $50 trillion of assets under management to ESG by 2025 – a figure that represents more than one third of all assets under management, according to the AFP report. The survey results show a stark shift in recent years toward a stronger embrace of ESG, particularly since 2019 when the Business Roundtable announced that its members would transition from shareholder primacy to “a commitment to all stakeholders,” aligning with ESG goals to demonstrate responsibility to broader constituencies.
In the 2019 AFP survey, just 10% of respondents anticipated shifting their corporate investment stance to be closer to this stakeholder approach, but the 2021 survey revealed that 35% of respondents ultimately did make impactful changes toward that approach. In the next three years, 27% expect to major changes toward that approach and another 45% expect to make minor changes.
Within the ESG movement, the increased focus on diversity, equity and inclusion efforts appears to be particularly powerful. Not a single respondent expects to spend less on that category in 2022 than they did in 2021 and a robust 45% expect to spend more.
“Before COVID, the focus was on companies and customers,” one respondent said. “Now there seems to be a greater investment in people, diversity and inclusion.”

Growing focus on ESG has potential to change financial planning role.

https://www.benefitspro.com/2022/01/26/growing-focus-on-esg-has-potential-to-change-financial-planning-role/

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