Investors Expect Financial Firms to Embrace Sustainability

Hedtke said industry leaders have adopted investing criteria that use a sustainability lens for evaluating potential investments. "It has a powerful domino effect toward bringing more companies in line with efforts to create a more sustainable future."

A major effect of the increased focus on the financial services and insurance industries is a new expectation. 

Sixty-three percent of survey respondents said financial services companies have a responsibility to do whatever they can to mitigate the climate crisis, and 59% felt insurance companies have the same obligation.

Respondents are also drawing a clear line between sustainable investing and better outcomes, the survey found. 

Sixty-two percent said financial services companies that embrace environmental sustainability are better positioned for long-term success, and 58% said the same about insurance carriers. 

Moreover, nearly two-thirds of those surveyed said that if they were making a decision on which life insurance policy to choose, they would choose the policy from the carrier that is committed to incorporating principles of sustainability into their investment decisions.

"The firms that choose to ignore these principles will face increasing costs, rising negative sentiment among investors, and, ironically, a less than sustainable future themselves," Hedtke said.

Amid these increased expectations, however, the survey also identified a need for investors to become more informed about the investing process. 

Only 52% of respondents said they understood how financial services companies make decisions about how to invest their money, and just 38% could name specific financial services companies that successfully invest their assets in environmental sustainability efforts. 

Even fewer said they understood how insurance companies make investment decisions, or could identify any insurance companies that successfully invest in environmentally responsible ways.

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