Implementation and evaluation of ESG considerations
There has been a global rise in implementation and evaluation of sustainable investment considerations, with over seven in ten doing so globally in 2020. Regional differences between North America and EMEA are narrowing.
The 2020 rate of sustainable investment adoption and evaluation in EMEA (85%) remains higher than that of North America (63%). Notably, in North America the rate of implementation and evaluation increased from 39% in 2018 and 2019 to 63% in 2020.
Adoption and evaluation of sustainable investment/ESG considerations grew for asset owners across the AUM spectrum. Eighty percent of asset owners with AUM of $10 billion or higher have adopted or evaluated SI/ESG considerations, compared to 65% of asset owners in the sample with AUM under $10 billion.
Exhibit 2.1 | Sustainable Investment / ESG Implementation or Evaluation by Region
Is your organization currently implementing or evaluating ESG/sustainability considerations in your investment strategy? Sample size for Other regions not large enough to break out; respondents from these regions are included in total.
Exhibit 2.1 | Sustainable Investment / ESG Implementation or Evaluation by Region
Is your organization currently implementing or evaluating ESG/sustainability considerations in your investment strategy? Sample size for Other regions not large enough to break out; respondents from these regions are included in total.
Exhibit 2.2 | Sustainable Investment / ESG Implementation or Evaluation by AUM
Is your organization currently implementing or evaluating ESG/sustainability considerations in your investment strategy? Sample size for <$1 billion and $1-10 billion not large enough to break out; responses from these segments are grouped as <$10 billion.
Among those who are implementing or evaluating ESG/sustainability considerations, there is significant interest in fixed income (58%) and multi-asset (31%) applications.
Fixed income applications, which have historically lagged equity market application of sustainable investment considerations, are particularly strong in EMEA where 75% of respondents are currently implementing or evaluating sustainability considerations for this asset class. In North America, 45% of respondents are implementing or evaluating ESG/sustainability considerations for fixed income investments.
About one-third of respondents globally are implementing or evaluating ESG/sustainability considerations for multi-asset investments. Interest in commodities application of sustainable investment considerations is stronger in North America than EMEA, with 14% of North American asset owners reporting evaluation or adoption. Less than 10% of respondents are evaluating ESG/sustainability consideration for currency investments.
Exhibit 2.2 | Sustainable Investment / ESG Implementation or Evaluation by AUM
Is your organization currently implementing or evaluating ESG/sustainability considerations in your investment strategy? Sample size for <$1 billion and $1-10 billion not large enough to break out; responses from these segments are grouped as <$10 billion.
Among those who are implementing or evaluating ESG/sustainability considerations, there is significant interest in fixed income (58%) and multi-asset (31%) applications.
Fixed income applications, which have historically lagged equity market application of sustainable investment considerations, are particularly strong in EMEA where 75% of respondents are currently implementing or evaluating sustainability considerations for this asset class. In North America, 45% of respondents are implementing or evaluating ESG/sustainability considerations for fixed income investments.
About one-third of respondents globally are implementing or evaluating ESG/sustainability considerations for multi-asset investments. Interest in commodities application of sustainable investment considerations is stronger in North America than EMEA, with 14% of North American asset owners reporting evaluation or adoption. Less than 10% of respondents are evaluating ESG/sustainability consideration for currency investments.
Exhibit 3 | For which asset classes are you currently implementing or evaluating ESG / sustainability considerations?
Multi-pick. Segment = Currently implementing or evaluating ESG/sustainability considerations. Sample size for North America is 29, below the preferred threshold of 30.
Exhibit 3 | For which asset classes are you currently implementing or evaluating ESG / sustainability considerations?
Multi-pick. Segment = Currently implementing or evaluating ESG/sustainability considerations. Sample size for North America is 29, below the preferred threshold of 30.
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