According to recent research, European investors are at the forefront of making a net-zero commitment compared to their counterparts worldwide.

As per the Robeco Global Climate Survey, 37% of European investors and insurers have publicly committed to achieving net-zero emissions by 2050.

In contrast, the percentage is much lower in North America at 19% and in Asia-Pacific at 20%.

While globally, the proportion of investors who have made a net-zero pledge or are in the process of doing so has slightly increased from 45% in 2022 to 48% this year.

The report suggests that many European investors view sustainable investing as an essential aspect of their fiduciary duties, as it serves the best interests of their members and other stakeholders.

In contrast to the USA, where ESG investing has become politically charged, European politicians and regulators generally support measures to combat climate change.

The survey also highlighted that European insurance companies are driven to take action, with 39% having already made a public commitment and an additional 28% in the process of doing so.

These commitments are largely driven by internal stakeholders, as the insurers' business models are vulnerable to the impact of extreme weather events that could become more frequent and damaging if global temperatures continue to rise.

Politics and regulation play a crucial role in climate change actions, as the majority of European investors (63%) are concerned about the political and legal repercussions if they fail to take positive action towards it.

On the other hand, in North America, investors are more worried about the impact of ESG-friendly strategies. While 57% of investors in Asia-Pacific are concerned about political pressure and legal action.

In North America, 47% of investors are anxious about political pressure and legal action when implementing ESG investing, while only 30% of European investors share the same concern. Additionally, European investors are more inclined toward preserving wildlife and ecosystems. Around 32% of them plan to prioritise a Just Transition approach in their investment policies in the next two years, which considers the impact of environmental and sustainability changes on local communities.

For more investor-related news

Source: Funds Europe