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Laxman Pai, Opalesque Asia: A survey found 35% of institutional investors incorporated ESG factors into investment decisions, representing a 14 percentage point decrease from 2021.
According to Callan's 10th annual ESG Survey, 53% of foundations incorporated ESG, the highest adoption rate in 2022. Endowments and foundations typically have had the highest adoption rates since the survey's inception in 2013.
Callan's DC index research found ESG adoption remains "relatively low," the survey document stated: Data showed 86% of plans do not include one ESG fund, compared to 14% of plans that have at least one ESG fund in their lineup. The defined contribution data presented in the Callan ESG survey come from the Callan 2022 DC Trends Survey and the Callan DC index from the second quarter of 2022.
Incorporating ESG factors for defined contribution plans likely remains low because of regulatory and fiduciary concerns, explained Tom Shingler, senior vice president and ESG practice leader at Callan, in a statement.
"50% incorporated ESG to meet their fiduciary responsibility," said the survey.
20% of respondents not yet incorporating ESG were considering doing so, it said. 75% of those that incorporated ESG considered ESG factors with every investment/manager selection. 47% of respondents that did not incorporate ESG indicated it was because they believed the benefits were unproven or unclear.
The decline in ESG adoption for public plans from 63%...................... To view our full article Click here
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