Professional investors in the UK expect a greater focus on ESG issues in small and micro-cap companies, new research from investment holding company MBH Corporation shows.
The MBH study, among UK based professional investors managing a collective £83.2 billion who specialise in small and micro-cap investments, found 87 percent believe the focus on ESG issues will increase over the next 12 months with 31 percent expecting a dramatic increase in the next year.
Furthermore, the numbers expecting a dramatic increase over the next five years increases to 46 percent the study found, with none of the investors interviewed believing the focus on ESG will decrease in the next 12 months or the next five years.
The research found 82 percent of investors believe the focus and investment by small and micro caps in ESG will increase over the next three years with 37 percent saying it will increase dramatically.
Increased focus and investment on ESG will be accompanied by enhanced reporting and transparency from companies on their ESG policies and strategies with 92 percent expecting the level to increase including 49 percent who expect a dramatic increase.