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Laxman Pai, Opalesque Asia: Investors in 'real assets' - an asset class including property - will increase their focus on environmental, social and governance (ESG) criteria, over the next five years, according to a survey by Macquarie Infrastructure and Real Assets (MIRA).
Over 90% of investors said they will incorporate more ESG factors over the next five years as they hunt for returns, it revealed.
Nearly 80% of real asset investors acknowledged a positive correlation between ESG and investment performance - but a lack of in-house expertise could be a barrier, the research found.
However, an emerging ESG skills shortage poses a barrier to the full integration of sustainability into investment frameworks. The ESG skills gap across markets revealed by the report is a significant reason why only 23% of investors currently quantify the benefits of their managers' efforts and performance on sustainability.
The MIRA ESG Survey of 150 real asset investors with a collective $20 trillion of assets under management found 91% of them expecting to increase their focus on ESG in the next five years. That compares to 58% who increased their focus in the previous five years.
Phil Peters, head of Macquarie Asset Management's client solutions group, said: "Investors in the real asset sector have reached an inflexion point, with a growing consensus agreeing that sustainability strategies can be pursued whilst delivering value for investors and driving positive change ...................... To view our full article Click here
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