According to a new study, a significant 93 per cent of Indian institutional investors now factor in sustainability information when making investment decisions. The study, titled ‘Investor Trust in Sustainability Data,’ was released by Deloitte and The Fletcher School.

The report shows that about 78 per cent of these investors allocate up to 30 per cent of their funds to organizations with specific and measurable Environmental, Social, and Governance (ESG) goals. Among the various reasons for incorporating sustainability into investment choices, 41 per cent of investors cited regulatory requirements as the primary driver. This was followed by a focus on improved social and environmental outcomes, each at 36 per cent.

This approach differs from global trends where financial performance and risk diversification are often given higher priority. The study also notes that around 80 per cent of Indian investors have already established sustainability policies. Of these, 14 per cent have maintained such policies for over five years, while 58 per cent have done so for more than two years.

However, the report highlights challenges in accessing reliable data. A notable 73 per cent of investors pointed out that inconsistent or incomparable ESG rating data undermines its trustworthiness. Additionally, 71 per cent mentioned cost constraints as a barrier to integrating ESG data into investment models, and 70 per cent cited the lack of measurable outcomes in corporate disclosures as a concern.