The Nordea ESG Adviser Survey 2024 reveals a dynamic landscape for sustainable investing across core markets in Europe, with varying levels of engagement and interest among advisors and investors. Conducted by CoreData, the survey of 400 financial advisors sheds light on the diverse motivations and challenges in the ESG space.
Overall, advisors in the countries surveyed remain committed to ESG, with 59% showing strong interest, and 34% planning to increase their recommendations for ESG investments over the next year. Climate change is the most discussed ESG investment theme across markets (68%), particularly renewable energy, which resonates with 75% of clients. Despite recent market challenges, the interest in measurable ESG outcomes is growing, with 60% of clients occasionally or frequently asking for tangible results. Part of this uptake could be due to EU regulations which continue to mandate ESG considerations, making it an unavoidable topic in client conversations.
European investors in ESG expressed a desire to exclude companies that do not meet their ethical standards and an eagerness to drive positive change through investments. In both cases two-thirds of the investors saw this as a main reason to invest in ESG funds.
- Compared to the other countries Swiss advisors lead in support for ESG, with 68% expressing strong interest. 70% of polled advisors said they see continued interest in ESG from their clients (11% even see a strong interest) and are still actively discussing this topic with them.
- The most important motivator for Swiss clients that invest in ESG funds is a desire “to bring about positive change through their investments” (71%), followed by “avoiding companies whose ethical standards they do not support” (68%).
- Swiss advisers report that the primary barrier deterring investors who choose not to invest in ESG funds is the concern that they will yield lower returns than non-ESG funds — 70% of non-ESG adopters said this was an issue, compared to 57% in the other surveyed markets.
- Reflecting the high level of investor engagement in ESG in Switzerland, one in five Swiss advisers reports that their clients frequently demand tangible ESG results, with another two in five noting occasional requests.
- Climate change is the most commonly discussed ESG theme with Swiss clients (62%), followed by clean technology (56%). When it comes to climate themes, new technologies to accelerate the transition to a low-carbon economy (69%) and renewable energy (62%) resonate strongly with Swiss investors.
- When discussing social challenges, Swiss clients see health and well-being as the most pressing theme (73%).
“While headlines of sustainability scepticism have recently become more apparent, in Switzerland—and across Europe—the undercurrent of responsible investing continues to strengthen, particularly as regulations are continually rolled out,” says Cristian Pappone, Regional Head, Switzerland & Austria at NAM. “NAM was an early adopter of Responsible Investment 35 years ago and continues to be an ESG leader. We offer clients a broad range of responsible products, across all asset classes, designed to have a positive impact while aiming to deliver positive returns.”