Which of the following is NOT a driver for clients to seek ESG investment?

The choice indicating that a belief in the unimportance of social issues is not a driver for clients to seek ESG (Environmental, Social, Governance) investments is indeed correct. Clients seeking ESG investments typically do so because they are motivated by a range of factors that align with the principles of sustainability and responsible investing.

Fiduciary duty involves the obligation of investors to act in the best interest of their clients, which increasingly includes consideration of ESG factors as integral to understanding risks and opportunities in investment performance. Reputational risk reflects the awareness that companies and investors must manage their public image, which can be impacted by social and environmental considerations. Personal ethics often drive individuals and institutions to align their investment choices with their values, seeking to support companies that demonstrate commitment to social responsibility and sustainability.

In contrast, believing that social issues are unimportant goes against the ethos of ESG investing. This perspective diminishes the relevance of social and environmental factors, which are central to the motivations behind ESG investment decisions. Thus, it is not a valid driver for pursuing investments in this space.