(Credit: Pixabay)A majority of asset owners globally actively integrate ESG factors into their investment process, according to a new survey published today by the Morgan Stanley Institute for Sustainable Investing and Morgan Stanley Investment Management.
The survey polled 110 public and corporate pensions, endowments, foundations, sovereign wealth entities, insurance companies, and other large asset owners worldwide, 92% of which had total assets over $1 billion.
The report says that nearly eight in 10 (78%) investors surveyed agree that sustainable investing is a risk mitigation strategy. Additionally, asset owners already practicing sustainable investing have identified clear benefits to reputation and stakeholder engagement.
Sustainable investing has gathered enough momentum in recent years to reach the mainstream. That’s made clear by recent news like that of S&P Global launching its S&P Global Environmental, Social, and Governance (ESG) Scores with coverage of more than 7,300 companies, representing 95% of global market capitalization.
Or the fact that T. Rowe Price recently reported that ESG disclosure issues became the number one topic in its engagements with the managements of companies around the world in 2019.
The company said that the rising risks associated with climate change will impact virtually its entire universe of portfolio holdings to varying degrees. Because of this, climate change alongside other ESG factors is being increasingly factored into analysts’ evaluation of company fundamentals.
Results from the survey identify several trends reflecting the increasing growth in sustainable investing as a whole. Key findings include:
