Sustainability Megatrends Report: Global Investors Reporting Higher Performance Yields after ESG Investing
Overview:
Cushman and Wakefield’s recent Sustainability Megatrends Report reveals that 60% of global investors believe ESG investing leads to higher performance yields. This finding underscores the growing financial benefits of sustainability and the increasing demand for ESG-focused investment products.
Institutional Investment Surge
Institutional investors are rapidly increasing their focus on ESG-related investments. According to the Sustainability Megatrends Report, 60% of surveyed investors reported higher performance yields from ESG investments. Additionally, 78% of investors are willing to pay higher fees for ESG funds, highlighting the strong demand for sustainable finance products.
Building Performance Standards
New Building Performance Standards (BPS) are setting benchmarks for energy efficiency and sustainability in real estate. These standards aim to improve the environmental impact of buildings by regulating energy consumption and carbon emissions. As more governments adopt BPS, companies must adapt their infrastructure to meet these requirements or face penalties.
Increased Transparency
With the rise of mandatory ESG reporting requirements globally, companies are increasingly required to disclose their environmental and social impact metrics. This push for greater transparency holds companies accountable for their sustainability efforts and can lead to financial penalties and reputational damage if not adhered to.
Shifting to Low-Carbon Economy
The global shift toward a low-carbon economy is driving significant changes across industries. Companies are investing heavily in renewable energy sources and implementing decarbonization strategies to reduce their carbon footprints. This transition is essential for meeting global climate goals and ensuring long-term sustainability.
The Sustainability Megatrends Report highlights the financial benefits of ESG investing and the growing demand for sustainable finance products. As institutional investors continue to prioritize ESG factors, companies must adapt to new standards and reporting requirements to stay competitive and meet investor expectations.
Read the full report here: https://cw-gbl-gws-prod.azureedge.net/-/media/cw/americas/united-states/insights/research-report-pdfs/2024/sustainability-megatrends-report_final.pdf?rev=2a66bfd3101e4428a9c459f4e5b85c7d
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