Just 6% of institutional investors believe asset managers excel in communicating/evidencing ESG approaches

Written by Adam Cadle

29/11/2022

Just 6% of institutional investors globally say that asset managers excel in communicating and evidencing their ESG approaches, indicating there is an opportunity for other asset managers to step forward as investors look to shake-up their investment manager line-ups, research published by Coalition Greenwich has revealed.

Among institutions that have adopted ESG, about half of Asian investors and 30% of North American investors expect to make ESG-driven manager changes on at least 10% of their assets in the next five years. In Europe, 60% of ESG users expect to shuffle manager line-ups based on ESG, with 27% of them predicting that these changes could affect at least a quarter of their assets.

“Many of these institutions are evaluating managers’ ESG approaches during the early stages of their manager selection process,” Coalition Greenwich global head of investment management Mark Buckley said.

“Managers who fall short on ESG could be eliminated from consideration early in the process. To be more effective, managers should put portfolio managers front and centre in client communications, clearly articulate how they incorporate ESG in the investment process, and present concrete evidence on impact and investment outcomes, including extensive use of case studies.”

The research is based on interviews with 305 key investment decision makers at large institutional investors across North America, Europe and Asia.

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