• The Index Industry Association (IIA) just released its third annual ESG Global Survey of Asset Managers.
• The survey results reveal that asset managers are prioritizing ESG criteria in investment decisions and need more, and more accurate, ESG data.
• The survey suggests that ESG will reach 63% of portfolios in 10 years, with the highest support coming from US asset managers.
Third Annual ESG Survey
The Index Industry Association (IIA) has just released its third annual ESG Global Survey of Asset Managers. In partnership with Opinium Research, the IIA surveyed 300 CIOs, CFOs and portfolio managers from the UK, US, Germany and France. Assets under management ranged from less than $1 billion to more than $1 trillion US dollars.
Widening Factors & Expanding Asset Classes
ESG focused asset managers are moving toward a broader view of Environmental factors, a widening lens on Social factors, and a new emphasis on Governance factors. Additionally, there is significant growth in commodities as an ESG asset class.
Emerging technology such as Artificial Intelligence (AI), Blockchain, Internet of Things (IoT), and Machine Learning are expected to help improve the timing, depth and predictive content of ESG data and metrics.
The survey responses suggest that despite economic volatility and political frictions, ESG’s future role in global investment portfolios continues to increase. Eight in ten (81%) asset managers say ESG has become more (54%) or much more (28%) of a priority to their investment strategy over the past 12 months. It is estimated that by 2023 it will reach almost half of portfolios in 2-3 years’ time; by 2030 it will reach 63%.
Support From US Asset Managers
Interestingly enought support for ESG investing is highest among US asset managers at 88%, where it has become more of a priority over the last year’s time frame compared to other countries surveyed such as France ,Germany or United kingdom