In the wake of the COVID-19 pandemic and the social justice movement, investors are paying much more attention to the social element of ESG -- specifically, how companies treat their employees, respond to political issues, and philanthropic efforts.
A recent nationwide survey by Crossmark Global Investments revealed how investors view a company’s actions when making investment decisions.
More than half of investors surveyed (56%) said they are paying more attention to how companies treat their employees this year. 59% of investors say their decision to invest in a company would be impacted if that company made significant layoffs due to the pandemic, but the management team did not take pay cuts.
A company's response to political issues affects investors' decision to invest in, purchase product or service from, or work for a company.
In addition to paying attention to how a company treats its employees, younger investors (18-34) are more inclined to pay attention to a company’s philanthropic efforts prior to investing in that company.
More than 60% of Millennials (ages 18 - 34) said a company's philanthropic efforts impact their decision to invest in the company compared to 43% of investors aged 55 and up. In terms of purchasing products or services from a company, 62% of millennials said the philanthropic efforts of a company have an impact on their decision making.
Everyone has values that impact their lives. In recent years, it has become increasingly common to align investments with these values. Today, it is estimated by Pension & Investments that as much as one-third of global assets ($40 trillion) was invested following a review of environmental, social or governance principles.
At Crossmark, the alignment of personal and investment values is central to our existence as an asset management company. This is why we focus every day on delivering the products, solutions and innovations to make responsible investing available to all.
Since 1996 - when our first values-based index portfolio was created - our firm has been guided by this collective conscience. We share your belief in responsible investing, and after more than two decades of providing values-based investment products, these represent over 60% of our assets under management. In addition, 90% of our custom equity index accounts are screened based on values or mission-based guidelines specific to each client.
The survey polled 1,269 high net worth investors age 18+ with investable assets of at least $250,000. Fieldwork was undertaken between September 11th – October 2nd, 2020. The survey was conducted online. * 18-54 year olds are over-represented in this survey.