Sustainalytics Insight: Asset Owners Want More When it Comes to ESG
As the perceived materiality of ESG factors to the investment process continues to grow among the largest global institutional investors, those same investors are looking for more from their ESG data, ratings and index provider, according to the third annual Morningstar Voice of the Asset Owner Survey.
According to the global quantitative survey, which gathered responses from 500 asset owners representing combined assets under management of $18 trillion, while asset owners believe that ESG data, ratings, and indexes have improved over the past five years, they also point out areas for improvement.
Specifically, in the survey asset owners shared that ESG data, ratings and indexes all play a role in implementing their ESG strategies, yet the underlying data was the most valuable. In addition, asset owners globally indicated that they are looking for more accuracy, more standardization and more relevant reporting for their ESG data, ratings and indexes.
Arnold Gast – ESG Research Director, Morningstar Sustainalytics:
“As sustainable investing continues to mature and ESG factors are viewed as more and more material to the investment process in the eyes of asset owners, this has raised the bar for ESG data, research and ratings providers. Our asset owner clients are asking for more holistic and extensive ESG quantitative metrics and qualitative analysis.”
To speak in more detail with Arnold, reach out to Tim Benedict at [email protected] or (203) 339-1912.