Most advisers have a ‘very positive’ view of the importance of ESG in portfolio construction, according to a new study by Foresight Group.

The research from Foresight, the independent infrastructure and private equity investment manager, was conducted among more than 100 financial advisers and revealed that 64% of advisers saw ESG considerations as ‘important’ when building portfolios for their clients – of which 15% considered it as ‘very important.’

Furthermore, the research indicated 80% of advisers believe in the importance of ESG investing in ensuring the UK delivers its ‘net-zero’ carbon targets, while 77% suggested they would consider investing in a global equity fund with an investment mandate focusing on companies that combat climate change.

When asked what would encourage a greater take-up of ESG funds among their clients, another 57% of the respondents cited education sessions to bridge the existing knowledge gap – followed by case studies (45%), learning tools (43%) and testimonials (25%).

Head of Foresight Capital Management and lead fund manager of the FP Foresight Global Real Infrastructure Fund, Nick Scullion, commented: “It is encouraging to see advisers getting behind ESG investing, however, there is still much to do for end investors to follow suit.

“As an industry, we must do a better job of putting forward the case for ESG investing, improving levels of knowledge and most importantly correcting the misperception around underperformance, particularly when the opposite is true.

“At Foresight, we pride ourselves on being a sustainability-led investment manager with strong ESG credentials and continue to wrap our investment strategies around the trends shaping society. We are certainly prepared to take on responsibility for working with the investment community to improve understanding and helping to shape sustainable investing in the future.”

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