Concerns about the environment have been the primary driver of client interest in SRI funds to date. The 78% of clients interested in investment strategies that accommodate their environmental concerns is nearly double the 41% of clients focused on corporate governance. Traditional negative screens for organizations that deal in guns, tobacco, and gambling remain a concern for 38% of clients.
Unsurprisingly, the vast majority of financial advisors (81%) prioritize environmental impact above other SRI screening criteria. More than half also incorporate transparent corporate governance (55%) and labor conditions/employee workplace policies (51%) into their firms’ SRI screening criteria.