Most institutional investors use internal research along with third-party sources to identify material ESG risks, but do not see ESG being widely implemented in investment decisions, according to a Bank of America survey.
Among attendees, 80% said they conduct internal research, and that their priority is standardized corporate disclosure.
More than 80% saw ESG as helping to improve management of investment risks, double the rate of investors using ESG as part of their fiduciary duty. Yet Two-thirds of respondents believe that less than 50% of global investors are implementing ESG in their investment process, and that only one-third in private markets are doing so.
In 2021, climate change, corporate governance and supply chains will be the top priorities, the investors said, with 48% seeing ESG as a greater priority post-COVID-19, with governance considered by 81% the most important factor for managing risk, while social issues like diversity and community engagement considered less so for respondents.
More than 600 corporate and institutional investors participated in the Global Themes in ESG conference Dec. 9-10, where the survey was conducted.