A survey by Corbin Advisors shows 79% of institutional investors say “G” is by far the most important element in ESG investing. This compares with only 30% saying that “E” and “S” are the most important. The survey is based on data from more than 500 institutional investors and nearly 100 investor relations officers at leading US companies. It also found that 76% of investors say ESG has become a greater factor in their investment process over the last two years. 48% of investors identify data quality and access, particularly for small-caps, as the top frustration when it comes to ESG factors.
A survey by BarclayHedge has found that hedge funds expect to invest more than half of their assets next year based on ESG criteria. 58% of hedge fund assets will be tied to ESG criteria in 2019, rising from 42% last year, and of those considering ESG factors in equity investment decisions, 52% of assets are currently allocated based on ESG ratings. 41% of respondents indicated that ESG ratings featured in 100% of their asset allocations. 61.1% chose governance as the most significant ESG criteria while 27.8% said they weigh environmental factors most heavily and 11.1% said sustainability was their top consideration.