Callan Consulting’s recently released 2020 ESG Survey puts some metrics around the increasing interest in ESG from US-based institutional investors.
The survey, conducted mid-year with input from 102 US institutional investors, finds that 42% of respondents already incorporate ESG into their investment decision-making process – nearly double those answering affirmative in 2013. Another 33% are not yet incorporating ESG into their investment process but are considering doing so. This is the highest percentage in the survey’s eight-year history and nearly triple the level in 2019.
Of those that do incorporate ESG into their process, over half (56%) say they include ESG factors in every manager selection.
Callan also finds:
- Endowments are most likely to incorporate ESG and actually increased their ESG adoption rate to 63% in 2020 from 58% in 2019.
- Foundations are second most likely, with 57% reporting that they include ESG into their decision-making process.
- Public and corporate plans incorporate ESG at roughly the same levels, 36% and 32% respectively. Despite their lower adoption rate overall, corporate plans are now incorporating ESG at their highest level in seven years.
- Of investors that incorporate ESG, 41% began doing so in the last five years (2016-2020).
ESG Data in eVestment
As interest in ESG increases, so does the need for deeper data on how managers implement their ESG approach.
That’s why eVestment launched a next-generation ESG questionnaire to provide investors worldwide with deeper data on how managers actually implement ESG at the firm and strategy level – not just their stated ESG philosophies.
Request a tour of ESG screening tools at firstname.lastname@example.org.