Sustainable, ESG and Impact Investment Marketing Should be Rising to Top of Mind for Money Managers
In the ever-changing sea of investment products, trends and offerings, the importance of sustainable investing is growing significantly in the eyes of investors, advisors and institutions. With the growing popularity of the global demographic theme and with the product set, investment companies need to be able to effectively communicate the nuances and differentiation of their ESG or sustainable investment offerings through strategic impact investment marketing.
According to the US Forum for Sustainable and Responsible Investment, ESG investments reached $8.72 trillion in 2016, one-fifth of all investment under professional management.[1] In addition, with the launch of the Morningstar Sustainability Rating, ESG investing has been brought to the masses with a standardized measurement, gently urging mutual fund companies and other money managers to add sustainable and impact investment thinking and strategies to their repertoire. These efforts to incorporate ESG in money management are all with good reason. In a survey completed by The Environment Resources Management Consultancy (ERM), 70% of survey respondents have seen ESG issues materially impact their investments, and 95% of survey respondents believe there is significant untapped value from ESG in their portfolio companies.[2]
This new movement in impact investing offers opportunities for both financial services firms and marketing companies alike. The investment marketing industry is in the process of adding this new dimensional element to what differentiates investment and asset management firms, should they offer ESG investment solutions. Companies with a commitment to offering investment specialties that cover environmental, social, and governance sustainability may find themselves ahead of the curve, and can further differentiate themselves to prospective investors through effective impact investment marketing. These investment firms can build brand awareness and brand loyalty through creative marketing and communication of ESG and sustainable investment solutions. Current data trends indicate that sustainable investing could be a way to reach new demographics of investors, including millennials, while addressing this important change in investor behavior and preferences.
Knowing investments are made in a meaningful and thoughtful manner can speak volumes to some investors. Managers can win client engagement by communicating their investment approach that utilizes an ESG awareness. At MBC Strategic, we are looking forward to seeing how firms begin differentiating sustainable investments from their counterparts in the traditional investment sector.
MBC Strategic is an award-winning Los Angeles financial and investment services marketing firm with specialties in branding, website design, content marketing, and public relations.
See how MBC Strategic differentiates investment companies through award-winning marketing here.
- The Forum for Sustainable and Responsible Investment, Report on Sustainable and Responsible Investing Trends, 2016
- Environment Resources Management, ESG: The Multiplier Effect, 2016