The incorporation of sustainability factors in investment decisions has become increasingly common in the portfolios of institutional investors over the past decade. This has been primarily driven by investors who may be focused on risk management, responding to new regulations, making investments that align with their values, or seeking to enhance long-term performance.
A recent survey of institutional investors by State Street Global Advisors, The Climate Opportunity, underscores the varying implementation of sustainable investing asset owners, many of whom have differing views on the topic. Therefore, it may be crucial for asset owners to partner with asset managers that can offer bespoke approaches, helping them meet their individual investment needs and objectives.