When entering the site and if cookies are prevented from being saved, a message must be displayed
in a popup message box informing the user that their local browser settings are preventing
cookies from being saved and that cookies are required for the site to work. Exact text
to be provided for UAT. On OK click of the message, the user should be redirected to
the global landing page (currently ssga.com).
Our latest research, uncovers the views of more than 300 institutional investors and world-leading institutions, revealing what is driving organizations to adopt ESG and the barriers that must be overcome to deliver the best outcomes.
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.
Key Push Factors
Once an uncertainty for many investors, the fiduciary duty aspect of ESG is now very clear, with 46% of respondents seeing it as the key driver.
Also at 46%, the other leading driver for many is regulation. It is clear that regulation will increasingly shape future adoption, particularly on topics such as climate.
At 44%, mitigation of ESG risk comes in a very close second, with many investors now realizing the danger that ignoring ESG entails.
Most Significant Factors Driving Adoption (Global)
The clear top push factors driving ESG adoption are responding to regulation, meeting fiduciary duty and mitigating ESG risks in the portfolio.
Click to Interact
What’s Driving Institutions to Adopt ESG? (By Institution Type)
Click to interact
What Frameworks or Initiatives have had the Biggest Impact on ESG Approaches?
Domestic regulation and policy in the domestic market clearly have the biggest impact.
Key Pull Factors
ESG Data in Disarray
The current state of ESG data — single sourced, low correlation and confusing terminology — is the main factor hindering adoption.
Internal resource constraints loom large when it comes to ESG adoption and implementation across asset classes. Every single investor surveyed has plans to employ more ESG resource.
Allied to resource constraint, for nearly 40% of respondents a lack of expertise in integrating ESG was a key hindrance factor.
Most Significant Factors Hindering Adoption (Global)
The availability of reliable and consistent ESG data is the top barrier to deeper ESG integration.
Data is the Number One Factor Hindering Further Adoption
Respondents are unhappy with the quality, coverage and consistency of ESG data.
Resources are Constrained and Expertise is Needed
Click to interact
About the Study
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.
Hong Kong: State Street Global Advisors Asia Limited, 68/F, Two International Finance Centre, 8 Finance Street, Central, Hong Kong. T: +852 2103-0288. F: +852 2103-0200.
All forms of investments carry risks, including the risk of losing all of the invested amount. Such activities may not be suitable for everyone. The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor. All material has been obtained from sources believed to be reliable. The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.
ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns. Standard & Poor’s®, S&P® and SPDR® are registered trademarks of Standard & Poor’s Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use by S&P Dow Jones Indices LLC (SPDJI) and sublicensed for certain purposes by State Street Corporation. State Street Corporation's financial products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and third party licensors and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability in relation thereto, including for any errors, omissions, or interruptions of any index.
This website is issued by State Street Global Advisor Asia Limited and has not been reviewed by the Securities and Futures Commission ("SFC").