IIA Global Survey reports dramatic ESG growth across asset classes

ESG becomes priority

Despite geopolitical unrest and global economic instability, the second annual ESG global survey of asset managers from the Index Industry Association (IIA) found 85% (of 300 polled investment fund companies in the U.S. and Europe) reporting that over the past year, ESG has become more of a priority within their company’s overall investment offering or strategy, with just over a quarter (26%) saying it is “much more of a priority.”

“Results of our second annual survey confirm what we’ve been hearing from our members – the asset management community wants to work with index providers to help drive ESG innovation and provide new options to help meet the strong demand from investors,” said Rick Redding, IIA CEO. “The survey results highlight that, among the many links in the ESG value chain, IIA members play an important role in bringing independent benchmarks to ESG stakeholders.”

Projections for ESG growth have accelerated rapidly from where they were just one year ago. In the next 12 months, 40% of asset management portfolios are expected to include ESG elements (up 13 percentage points from the IIA’s 2021 ESG survey). That projection grows to nearly six in ten (57%) of portfolios in 5 years (up 13 percentage points from 2021). In the next decade, respondents expect ESG elements to be incorporated into nearly two-thirds (64%) of their portfolios – a notable increase from 52% in 2021.

Demonstrating stewardship

While this is all great news, 29% highlight a lack of data standardisation across markets and sectors. Regulation is impending. Be ready. Our purpose-built solution enables fund managers to quickly and easily plan, track and report on activity across portfolio companies. Demonstrate stewardship to investors while fulfilling reporting and evolving regulatory requirements. 

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