Some North American managers are making ESG integration less of a priority, according to a global survey released Wednesday by Linedata.
The biennial Global Asset Management Survey by Linedata, a global provider of asset management software, data and services also tracked other trends, including continued digital transformation led by automation, data integration pain points, outsourcing and adoption of artificial intelligence.
The survey of 265 buy-side institutions, including asset managers and wealth managers, found that worldwide, more of them consider environmental, social and governance a high priority, 40% compared with 37% in 2021, "but it's only grown in one place — Europe," where it went to 63% from 41% two years ago, said Bob Moitoso, head of asset management, North America for Linedata, in an interview. For Asia-Pacific managers, ESG as a high priority dipped to 32% from 39% in 2021, the survey found.
While 33% of North American survey respondents, mainly in the U.S., considered ESG a high priority in 2021, only 22% did so in 2023, attributable to the political environment, Mr. Moitoso said.
"Asset managers still need to provide ESG offerings to their clients, and they still need to have reporting and data," he said. The survey found that 46% of firms expect ESG data management demands to intensify, driven in part by climate and fund disclosure rules from the U.S. Securities and Exchange Commission.