RBC Wealth Management – U.S. client survey
reveals growing interest in ESG and responsible investing,
especially among women, with financial advisors ranked as a top
source for information to guide investment decisions
MINNEAPOLIS, April 6, 2021 /PRNewswire/ - The winds of
investing in the U.S. are shifting and women are a driving force
behind the change. A recent client survey conducted by RBC Wealth
Management – U.S. shows that responsible investing, namely
Environmental, Social and Governance (ESG), is gaining traction.
Women are leading the charge for ESG investing and are more likely
to have a positive outlook toward this growing investment
trend.
Client respondents who identified as women are more than twice
as likely as men to say it is extremely important that the
companies they invest in integrate ESG factors into their policies
and decisions. The survey also found that 74% of women were
interested in increasing their share of ESG investments in their
current portfolios and were significantly more likely than men to
have an interest in learning more about ESG investing.
While the survey revealed that women are leading the charge in
ESG investing, more than half of male respondents (53%) also
expressed interest in increasing the share of ESG in their current
portfolio, and 61% of clients overall shared this position.
"The results from this survey reinforce a belief we've had for
several years: that responsible investing is poised to become a
dominant strategy in the U.S. and that women are leading the
adoption," said Kent McClanahan,
Vice-President, Responsible Investing at RBC Wealth Management –
U.S. "As responsible investing continues to gain momentum, it is
essential to have the right resources to help investors meet their
standards in ESG investing and to learn more about the different
elements that integrate ESG factors into an investment portfolio.
Our advisors are ready to educate, counsel and guide clients to
create impact with their investment strategies."
Overall, about a third (31%) of RBC clients acknowledged the
importance of integrating ESG factors into their investment
decisions, with female clients rating all elements within the "E"
for Environmental and "S" for Social categories in ESG
significantly higher than male clients. The "G" for Governance was
the one factor that showed no difference by gender and ranked the
most important to clients across all ESG elements. Corporate
ethics, regulatory compliance followed by transparency were the
most important of governance elements for clients.
The results of RBC's survey support the growing industrywide
enthusiasm for ESG investing. A new report from non-profit
foundation US SIF: The Forum for Sustainable and Responsible
Investment found that at the start of 2020, $17.1 trillion was invested in responsibly
invested assets in the U.S., up a staggering 42% from $12 trillion just two years prior. ESG investing
was among most popular responsible investing strategies, accounting
for a third of all managed assets in the U.S.
Among the other ESG factors, when it came to the "S" in Social,
women ranked human rights at 80%, workplace health and safety at
75%, and social justice at 64% as the most important elements for
them.
"While these issues likely have been important to women for some
time, the growing interest in the "S" factor has no doubt also been
impacted by the events of 2020, which put a spotlight on
social justice and the effects of systemic racism," McClanahan
said.
Men also thought these "S" elements were important but at lower
levels of 62%, 67% and 44%, respectively. On the Environmental
side, water scarcity and cleanliness, and pollution and waste
management were the most important elements, particularly among
female clients.
Financial Advisors Top Source for Information,
Education
RBC's survey also revealed a vast majority of
clients (86%) would turn to their financial advisors to find out
more about ESG investing, signaling the need for advisors to be
ready to guide current and future generations of investors on
topics around responsible investing and how they can integrate
different ESG considerations into an overall investment portfolio
and long-term plan. Advisors have to also recognize that while many
clients are interested in ESG investing, they don't always know
where to start in the learning process.
"Advisors need to be prepared to engage in conversation and
proactively approach the topic of responsible investing with
clients, who are seeking their expertise and guidance as they
navigate through new ESG investing opportunities," McClanahan
added. "Responsible investing is an area that will continue to grow
as clients express greater interest. RBC Wealth Management will be
ready to provide the advice and tools to confidently include ESG
investments in clients' portfolios."
About the Survey
Survey results are based on responses
from 1,003 RBC Wealth Management – U.S. clients in February 2021. The survey was sent via email with
a link to an online survey to 20,000 clients, representing a 5%
response rate. Of the client responses, 43% are high net worth
(HNW) clients with investable assets of $1
million or more.
Click here for additional information on RBC Wealth
Management's ESG capabilities and offerings.
About RBC
Royal Bank of Canada is a global financial institution with
a purpose-driven, principles-led approach to delivering leading
performance. Our success comes from the 86,000+ employees who
leverage their imaginations and insights to bring our vision,
values and strategy to life so we can help our clients thrive and
communities prosper. As Canada's
biggest bank, and one of the largest in the world based on market
capitalization, we have a diversified business model with a focus
on innovation and providing exceptional experiences to our 17
million clients in Canada, the
U.S. and 34 other countries. Learn more at rbc.com.
We are proud to support a broad range of community initiatives
through donations, community investments and employee volunteer
activities. See how at rbc.com/community-social-impact.
About RBC Wealth Management – U.S.
In the United States, RBC Wealth Management
operates as a division of RBC Capital Markets, LLC. Founded in
1909, RBC Wealth Management is a member of the New York Stock
Exchange, the Financial Industry Regulatory Authority, the
Securities Investor Protection Corporation, and other major
securities exchanges. RBC Wealth Management has $463 billion in total client assets with more
than 2,000 financial advisors operating in 178 locations in 42
states.
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SOURCE RBC Wealth Management - U.S.