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Laxman Pai, Opalesque Asia: ESG investing remains strong globally among institutional investors said a survey. It also found a significant acceleration in low-carbon transition strategies.
The 'ESG Global Survey 2023', conducted by BNP Paribas and drawing insights from 420 participants, including asset owners and managers, hedge funds and private equity firms has unveiled an upward trajectory among institutional investors toward investments with discernible positive impacts and financial returns.
Of the respondents, 41% marked net zero as their priority in their organization, and 48% say it will be within the next 2 years. In 2021, only 18% of investors had a net zero commitment, with 33% indicating they were considering a commitment.
"Despite data constraints posing the biggest barrier to ESG integration, especially in tackling financial risks posed by climate change, institutional investors are nevertheless incorporating ESG, notably in their portfolio management and investment decisions," the study said.
With 54% of respondents expecting to use it in the next two years (versus 45% now), impact investing is set to become the most popular ESG approach globally.
Meanwhile, 71% of respondents say inconsistent and incomplete ESG data is a significant barrier to the greater adoption of ESG (+17 percentage points versus 2021). To overcome these data challenges, 65% of respondents say they use and compare multiple sources of data, while 37% conduct thei...................... To view our full article Click here
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