The latest insights from Kia Kokalitcheva in the Axios Pro Rata newsletter reveal that ESG funds in alternative assets continue to thrive. PR professionals can leverage this ESG agenda to create impactful communication campaigns. Here’s how:
💡 Highlighting Growth: Emphasize the significant growth in ESG funds. With $55 billion raised as of April 2023 and ESG funds making up 21% of all private capital raised, it’s clear that ESG is a robust and growing sector. Use these numbers to showcase the increasing importance and investor confidence in ESG.
🌍 Geographical Insights: Point out that European investors lead the way in impact and climate investing, making up 44% and 43% respectively, while North American investors follow closely. Tailor communications to highlight regional leadership and successes, fostering a sense of global commitment to ESG.
🏗️ Sector Focus: Infrastructure and private equity dominate ESG fundraising. Highlight case studies and success stories within these sectors to demonstrate the tangible impact of ESG investments. Showcase how these funds are being used to build sustainable infrastructure and drive positive social outcomes.
📊 Data-Driven Decisions: Use data to reinforce the importance of ESG standards. Mention that 24% of investors have turned down opportunities due to ESG concerns, with 36% willing to do so in the future. This data underscores the critical role of ESG in investment decisions and can be used to advocate for stronger ESG policies.
🔗 Addressing Skepticism: Acknowledge that ESG remains a divisive topic, with some skeptics questioning its returns. Use this as an opportunity to educate and inform stakeholders about the long-term benefits and resilience of ESG investments. Highlight research and examples where ESG funds have performed well.
🤝 Promoting Policies: Highlight the need for more comprehensive ESG policies across all sectors. With only 50% of infrastructure investors and 45% of private equity investors having an ESG policy, there’s a clear opportunity to advocate for broader adoption of these standards.
Strategic Takeaway: By leveraging the ESG agenda, PR professionals can position their organizations as leaders in sustainability and responsible investing. Highlighting growth, regional leadership, sector successes, and the importance of data-driven decisions will create compelling narratives that resonate with investors and stakeholders alike.