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Laxman Pai, Opalesque Asia:

ESG remains a top priority for institutional investors as 46% of respondents in a survey cited the need to meet fiduciary duty and regulations as a key driver for adopting ESG principles.

A survey conducted by State Street Global Advisors also found that 46% cited ESG risk management for the portfolio as a major factor pushing the issue. Though perhaps more so currently in EMEA and APAC, it is clear that regulation will increasingly shape future adoption, particularly on topics such as climate.

Meanwhile, 44% cited seeking ESG risk mitigation as the primary motivator.

As for the main barriers to asset owners adopting ESG policies, 44% cited a lack of reliable and consistent data as being the top inhibitor, while 43% said cost issues were the main factor, and 40% said a lack of expertise in integrating ESG was the top issue.

For nearly half of respondents, the current state of ESG data - single-sourced, low correlation, and confusing terminology - is a hindering factor to accurately assessing the credentials of underlying companies and their portfolio-level impact.

Internal resource constraints loom large when it comes to ESG adoption and implementation across asset classes. Every investor surveyed has plans to employ more ESG resources.

According to the survey, 95% of respondents intend to hire more ESG specialists within the next three years, while the remaining 5% plan to push their staff to be more knowledgeable on the su......................

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