The interest in integrating Environmental, Social, and Corporate Governance (ESG) considerations into investor portfolios is on the rise globally.
According to eVestment data and analysis, flows for long-only ESG strategies have been net positive for 13 out of the past 16 quarters. Investors have net allocated a total of +$119.3 billion to ESG products over that period. Equity strategies have seen the bulk of the inflows, with cumulative net allocations of +$61.3 billion to active equities and +$20.6 billion to passive equities. Global ESG equity products accounted for the majority of inflows over the past 4 years, buoyed mostly by Europe-domiciled investors. US ESG equity strategies have not been nearly as successful, historically, in terms of raising capital, but did post net inflows for the past six consecutive quarters, totaling +$8.5 billion.
Investors outside of Europe (in APAC and the Americas) interested in integrating ESG into their portfolio are turning to European managers for the best-fit strategies.
When non-European investor and consultant viewership is directed toward European firms, that interest is increasingly being directed toward ESG-focused strategies, accounting for almost 10% of their attention in 2020.
Percentage of ex-Europe Investor Views of Europe-Based Strategies Captured By ESG-Focused Products
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.
For more information on how to implement eVestment ESG data into your manager research, please reach out to email@example.com.