LGBT Great has urged the investment industry to incorporate an LGBT+ lens to form part of an inclusive ESG strategy as it launched a study into the topic on Wednesday (12 August).
The organisation said the global research study would analyse trends across three core data points: a mainstream consumer survey, qualitative and quantitative consultation with investment firms and a review of existing ESG research.
It is inviting investment professionals to support the study through a research interview in order to share their views on best practices and barriers to the implementation of the LGBT+ lens.
LGBT+ lens investing, the organisation said, was the practise of investing for financial return while also considering the benefits of those who identify as LGBT+ through improving economic opportunities, social inclusion and wellbeing.
The initiative has yet to be widely applied across the industry, LGBT Great added, with the aim of the research to make the case for accelerating its adoption and implementation in the 2020s and beyond.
Global head of investment and research at LGBT Capital Anders Jacobsen said the research would "enable fund managers and investment professionals to gain a data-driven insight into the expectations of the LGBT+ community".
It would also "highlight what [the LGBT+ community] want[s] to see from providers of investment products", Jacobsen added.
A recent report released by LGBT Capital estimated global LGBT per-annum purchasing power stood at $3.9trn in 2019, with the LGBT+ community's household wealth in excess of $20trn. This, Jacobsen reasoned, highlighted "the opportunity at stake and we hope this research will add a useful contribution to the industry".
Matt Cameron, global managing director of LGBT Great, said in a post-Covid world, "fully understanding and integrating ESG factors into investment decision making is essential".
"Adopting an LGBT+ lens will be one of the ways that investors can begin to understand the risks of social exclusion and discrimination and the opportunities at stake with making investment decisions which benefit the LGBT+ and ally community," Cameron added.
The research study will be led by an ‘alliance' of global organisations alongside LGBT Great, including Equality Group, LGBT Capital and the Bisi Alimi Foundation.
The alliance aims to complete its data collection and analysis during the months of August, September and October, with the study due to be published in November.