Thematic Investors Seek Impact

Sixty-five percent of European investors use thematic strategies, an increase of 20% since 2020, according to new research from BNP Paribas Asset Management and BNP Paribas CIB. The survey, involving 200 institutional investors and intermediary distributors globally, found the use of thematic strategies amongst Asian investors had fallen to 34% from 54% in 2020, and only 20% of North American investors used thematic strategies. However, despite geographical differences, 70% of all respondents said they planned to increase their focus on thematic investment over the next three years. The survey said that thematic investment growth is being fuelled by investor need for positive impact (70%) as well as the expectation of enhancing investment returns (63%).  Constance Chalchat, Head of CIB Company Engagement and Global Markets Chief Sustainability Officer, BNP Paribas, said: “Although there are divergences in the pace and current composition of ESG thematic investing across regions, the significant momentum we are seeing in Europe is here to stay, as the research highlights that investors are targeting both alpha generation and impact. The most appealing current ESG themes focus on investing in the energy transition, including pursuing targeted investment strategies across renewables and climate change solutions, as well as emerging areas such as water.” 

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