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Laxman Pai, Opalesque Asia: Institutional investors see the collecting and analysis of data as the greatest challenge to incorporating Environmental, Social, and Governance (ESG) factors into investment management, said a study.
According to a Northern Trust-sponsored market study conducted by PwC, ESG considerations become more embedded in institutional investment portfolios, investors face several complexities, including data sourcing and standardization, as well as evolving regulatory reporting needs.
When asked about the top challenges in incorporating ESG into their investment process, both asset managers (89%) and asset owners (79%) identified "collecting and analyzing data" as a top challenge.
Similarly, both asset managers (82%) and asset owners (77%) identified "securing and normalizing sustainable investing data" as a key challenge.
The white paper, ESG's Imprint on Institutional Investing, found that while most asset owners and managers are prioritizing ESG initiatives, various complexities remain.
When asked what their greatest ESG needs are for their investing practices, asset managers (76%) cited internal reporting and data, with nearly half of surveyed asset owners (40%) sharing this notion. Continuing this trend, the study found that both asset owners and managers identified analytical service needs and data solutions as a top challenge.
In a rapidly shifting regulatory environment, the need for data standardization is clear: the...................... To view our full article Click here
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