Despite the anti-ESG push, more than six in 10 North American asset owners believe environmental factors have become more material in the past year, according to research by Morningstar. The global index provider’s third annual ‘Voice of the Asset Owner Survey’ gleaned the perspectives of 500 global asset owners – representing more than US$18 trillion in assets – on their investment policies, opinions on regulatory changes, and the role of ESG factors in their investment approaches. The survey found 64% of North American asset owners viewed environmental factors as more, or much more material – compared to just 16% who viewed them as less, or much less – aligning them with the perspectives of European (62%) and Asia-Pacific (66%) parties. Net zero emissions and energy management increased as most material environmental issues to asset owners’ investment decisions, while sustainable food and agriculture were deemed to be less material than last year. Fifty-three percent of North American, 58% of European, and 62% of APAC asset owners said social factors had become more, or much more material over the past year, while for governance the figures stood at 56% for owners in both Europe and APAC, and 51% for North America. For social issues material to asset owners, labour practices and human rights widely increased, while business ethics spiked in the governance category. Asset owners also underscored the need for ESG data, with 43% pointing to this as being most useful for their investment strategies, ahead of ESG ratings (24%) and indexes (23%).
The Morningstar Voice of the Asset Owner Survey provides an annual snapshot of what makes asset owners tick, what drives their behavior, and what keeps them up at night.
Here's why climate is driving the agenda for asset owners. https://t.co/aluIXnf5cw
— Morningstar, Inc. (@MorningstarInc) September 24, 2024
