Skip to main content
MENU
Subscribe
  • Subscribe
  • Account
  • LOGIN
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE Act 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2022 Innovation Investing Conference
    • 2022 Defined Contribution East Conference
    • 2022 ESG Investing Conference
    • 2022 DC Investment Lineup Conference
    • 2022 Alternatives Investing Conference
Breadcrumb
  1. Home
  2. ESG
October 06, 2020 03:30 PM

ESG factors on the rise for asset owners, managers – surveys

Hazel Bradford
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Bloomberg
    A helicopter drops water on a smoldering hillside above a winery along during the Glass Fire in Napa County, Calif.

    Institutional investors continue to incorporate ESG factors into investment decisions, and many not yet doing so are considering it, according Callan's eighth annual ESG survey.

    As with last year's survey, Callan found that 42% of institutional investors incorporate ESG factors into investment decisions, up from the 22% result from the first survey in 2013. The 2020 survey also registered the highest rate of respondents, 30%, who are not yet incorporating ESG factors but are considering it, triple the rate from 2019.

    Endowments are still the top ESG incorporators, increasing their adoption rate to 63% from 58% in 2019, followed by public plans at 36%, and corporate defined benefit and defined contribution plans at 32%.

    The upward trends come despite regulatory uncertainty about ESG investing, reflecting the long-term investment approach of institutional investors, said Tom Shingler, senior vice president and chairman of Callan's ESG Committee, in a statement. "We see increasing investor interest in incorporating financially material ESG factors into their investment processes,"

    The survey was conducted in June and July among 102 U.S. institutional investors, ranging from less than $500 million to $20 billion in assets.

    A separate survey of asset managers by Russell Investments also found increasing incorporation of ESG metrics into their investment processes and wider reliance on ESG resources to do so. Russell's sixth annual ESG Manager Survey found nearly 80% of firms incorporate ESG factor assessments in their investment process.

    The survey covered 400 asset managers globally across a broad range of asset classes, including equity, fixed income, real assets and private markets, that were asked views on ESG investing and how they integrate ESG factors into investment processes. This year's survey represented 33% more asset managers than the previous year, with 60% based in the U.S., 14% in the U.K. and 8% in Europe. A quarter of participants had more than $100 billion in assets under management.

    In the 2020 survey, 78% of managers reported that they explicitly incorporate qualitative or quantitative ESG factor assessments into their investment processes, compared to 73% in last year's survey. The most growth was reported in the U.S., at 11%, Canada at 15% and the U.K. at 11%.

    As asset owners increasingly push for transparency into ESG factors in investment processes, the survey found that 49% of asset managers claimed to offer ESG-specific reporting to clients. Asset owners also want to see more linkage between portfolios and climate risk, and firms in Europe, Australia and New Zealand were better prepared to address those climate risk measures, the survey found.

    Corporate engagement was the most frequent source of ESG-related information, the survey found, particularly among fixed income managers, 92% of which reported regularly engaging with companies they invest in. Along with engagement, more asset managers are using external ESG data providers to supplement their in-house views, according to the survey.

    "The results of our 2020 survey show the fund management industry continues to embrace ESG integration, even amid pandemic-related challenges and volatility. They are seeking better ESG information, deeper resources, broader consideration within investment processes and clearer regulatory standards," Yoshie Phillips, Russell Investments' director of investment research-global fixed income, said in a statement.

    "While governance remains the dominant factor in investment decisions, relative to environmental and social factors, the survey also reveals increasing focus on all three areas," Ms. Phillips said. "At the same time, asset managers indicate they're seeking greater clarity of the value-add from explicit ESG integration."

    Related Articles
    Tab for climate change inaction could rise to $31 trillion
    EU seeks to boost eurozone with green bond program
    From investing to ESG, election a show of dramatic contrasts
    Recommended for You
    ONLINE_190309882_AR_0_XFZKIXDKXIME.jpg
    Vanguard: On course to net-zero investment portfolio goal
    ONLINE_190519976_AR_0_TYCWEJFZBOUA.jpg
    SEC wants more disclosure on funds using ESG factors
    Oil Refinery Poland Climate Carbon_i.jpg
    Divesting isn't answer to reducing carbon, Carlyle study finds
    OCIO, Anchor in Rough Seas
    Sponsored Content: OCIO, Anchor in Rough Seas

    Reader Poll

    May 23, 2022
    SEE MORE POLLS >
    Sponsored
    White Papers
    Crossroads: Politics, Inflation, & Bonds
    Credit Indices: Closing the Fixed Income Evolutionary Gap
    Forever in Style: Benchmarking with the Morningstar® Broad Style Indexes℠
    Q2 2022 Credit Outlook: Carry On
    Leverage does not equal risk
    Is there a mid-cap gap in your DC plan?
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    May 23, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE Act 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2022 Innovation Investing Conference
      • 2022 Defined Contribution East Conference
      • 2022 ESG Investing Conference
      • 2022 DC Investment Lineup Conference
      • 2022 Alternatives Investing Conference