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ESG adoption increasing amongst US institutional investors
12 October 2020

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 solutions@evestment.com.

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