U.S. institutional investors incorporating ESG factors
About 42 percent of U.S. institutional investors incorporated environmental, social, and governance (ESG) factors into their investment decision-making process in 2019, according to Callan in its seventh annual ESG Survey.
The survey features responses from 89 U.S. institutional investors and reveals an ongoing disparity in ESG adoption rates by investor type and size. Historically, nonprofits have had the highest ESG adoption rates, and public plans have incorporated ESG factors at a higher rate than their corporate counterparts.
“A big takeaway this year is the emergence of integration as the preferred implementation trend,” said Anna West, Callan ESG practice leader. “Of those incorporating ESG, 51 percent of investors did so with every investment decision, including manager selection. They're asking investment managers how ESG is being integrated into their strategy and how they're analyzing investments through an ESG lens.”
Tom Shingler, Ca