ESG may well be becoming a mainstream trend, but every institutional investor faces a unique mix of forces pushing them towards, or barriers pulling them away from, ESG investing.
Globally, the clear top push factors driving ESG adoption are responding to regulation, meeting fiduciary duty and mitigating ESG risks in the portfolio.
Domestic regulation and policy in the domestic market clearly have the biggest impact.
Globally, the availability of reliable and consistent ESG data is the top barrier to deeper ESG integration.
Respondents are unhappy with the quality, coverage and consistency of ESG data.
In mid-2019 State Street Global Advisors surveyed senior executives with asset allocation responsibilities at over 300 institutions. They included private and public pension funds, endowments, foundations and official institutions. Respondents are directly involved in or influence asset allocation decisions.
The survey was conducted by a combination of telephone interviews and online. The results were analyzed and collated and comprehensively supplemented by a series of in-depth interviews with senior institutional investment professionals.
As our survey shows regulatory, stakeholder and other environmental drivers are increasingly making the need to find the right ESG investments solutions an urgent one. But we also know that performance is key to the right ESG solution, so we’ve developed the tools and solutions to help you meet your ESG and performance goals.
Proud signatories of the UNPRI, rated A+ for our firmwide strategy and governance of ESG investments and a leader in ESG investing for 30+ years, today we are integrating ESG directly into our investment processes. We have a full suite of ESG products to help meet your objectives.
Discover how we can help you get your ESG strategy right.
All charts and data are from the Into the Mainstream survey, published by State Street Global Advisors, as of November 2019.