Active company engagement and stewardship
Alignment with corporate / internal values and pressure from regulators are driving the sustainability investment focus for global institutional investors.
Aligning to corporate / internal values
Regulator and industry pressure
Potential for higher returns and lower risk
Education & awareness from asset managers
Education & awareness from investment consultants
Evidencing a tangible outcome
Consistently voting against companies to drive change
Withdraw / exclude investments from these companies
Institutional investors focus on a wide variety of areas when it comes to engaging on sustainable issues, but attention to environmental issues and corporate strategy continue to be the leading engagement strategies.
Attention to environmental issues
Supply chain management
Performance data and greater transparency have been consistently highlighted as crucial for successful adoption of sustainable investments in the long term.
Data/evidence that shows investing sustainably delivers better returns
Greater transparency by companies on both financial and non-financial perofmance reporting
More providers and benchmarks offering sustainable data
Industry wide accreditation
More sustainable investment options e.g. impact investing
Greater support from senior leadership
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Schroders commissioned CoreData to conduct the fourth annual Institutional Investor Study to analyse the world’s largest investors’ key areas of focus and concern including the macroeconomic and geopolitical climate, return expectations, asset allocation and attitudes to private assets and sustainable investing. The respondent pool represents a broad spectrum of institutions, including pension funds, insurance companies, sovereign wealth funds, endowments and foundations owning approximately $25.9 trillion in assets. The 650 respondents were spilt as follows: 179 in North America, 248 in Europe and South Africa, 173 in Asia-Pacific and 50 in Latin America.