The Covid-19 pandemic has increased the significance of the social aspects of ESG for investors, according to a survey of members of the European investment community conducted by Berenberg WAM, the wealth and asset management arm of Berenberg private bank.

The survey included asset managers and private investors, and reported on attitudes to ESG, impact-related topics and the UN Sustainable Development Goals (SDGs).

Among 112 respondents, who were primarily from the UK and Germany, 47 percent considered the social ‘S’ element of ESG as the most important, followed by 35 percent selecting environmental factors (‘E’) and only 18 percent chose governance (‘G’).

Participants have attributed this shift to the pandemic, which has increased scrutiny into how companies - and governments - have dealt with the impact of countries’ lockdown and economic recession on their staff, suppliers, customers and communities.

In addition, it was felt Covid-19 had thrown existing inequalities into greater focus, highlighting the necessity to think harder about changes to working practices and employee wellbeing in the wake of the pandemic.

Richard Brass, Berenberg’s head of Wealth and Asset Management in the UK, said: “The pandemic has resulted in companies, and more broadly governments, being judged on how they treat individuals and employees, especially in areas and sectors hard hit by lockdown measures, and how they adapt for different working practices. Our survey confirms the ongoing focus on the environment and climate change and yet Covid-19 has prompted investors and asset managers to place greater prominence to social issues.”