U.S. Public Perceptions of “Environmental, Social and Governance (ESG)” Investments

Abstract Environmental, Social, and Governance (ESG) investing reflects efforts to align financial goals with ethical and sustainability considerations. While ESG has gained prominence in institutional and regulatory debates, public understanding of ESG, especially in the context of money managers making decisions on their behalf, remains underexplored. Drawing on responses to a survey from a nationally representative sample, we examine public knowledge, trust, and support for the integration of ESG factors into professional investment decisions. While 56% of respondents indicated they care about ESG-related issues, only 39% expressed support for money managers incorporating ESG factors into investment allocations, suggesting misalignment between broad concern and willingness to integrate ESG considerations. Our analysis shows that support is patterned across demographics: younger, higher-income, and more educated respondents are more likely to endorse ESG integration. Multivariate analysis refines this picture: when demographic characteristics are considered jointly, higher education and income remain associated with support, age effects weaken, and ESG knowledge emerges as the variable that is most strongly associated with support, with those reporting greater familiarity substantially more likely to favor ESG inclusion. Amid a shifting landscape in sustainable investing, increased regulatory oversight, and growing concerns about greenwashing, our findings suggest that public support for ESG integration is more closely associated with informed understanding than with general concern, underscoring that clear, credible, and audience-tailored disclosure and communication are important for fostering informed engagement with ESG in delegated investment decisions.