A BNP Paribas survey of 420 asset owners and managers, hedge funds and private equity firms shows that institutional investors are mobilising capital towards investments that will deliver measurable positive impacts alongside financial returns. 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. Key findings include:
- Low-carbon transition strategies accelerate, despite pressure on investors' external commitments to net zero targets
- Impact investing is increasing in importance
- Limited data quality remains the biggest barrier to ESG investing
- Biodiversity data lags behind climate data
- Active ownership will play a key role
- ESG expertise is being integrated into investment-related operations
- Regulation and reputational risks are major drivers
Would be great to hear insights from members
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Aya Pariy
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