Governance tops global investors' sustainable investment priority lists
The survey revealed the 'most significant challenge to SI adoption is data focused', with 50% of those asked referencing 'concerns about availability of data and the use of estimated data'.
Surveying more than 300 respondents, the firm's latest global asset owner survey found governance is a priority that has «significantly risen across all regions», increasing from one in three (33%) in 2022 to 54% of investors globally in 2023.
For the EMEA region, climate and carbon-related assets has also increased as a priority for investors, jumping from 36% in 2022 to 73% this year.
On the other hand, social themes are no longer as much of a focus for global investors, dropping from 73% last year to 37% in 2023. In EMEA, this has fallen from 65% to 40%.
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Overall, the level at which asset owners are implementing and evaluating sustainable investments has declined after five years of steady growth. According to the survey, this has fallen from 88% in 2022 to 80% in 2023.
Sylvain Château, global head of product, sustainable finance and investment at London Stock Exchange Group, said: «Our research demonstrates the continual evolution of sustainable investment among asset owners and the differing priorities across the globe.
»While the long-term trend for sustainable investment reflects a very positive trajectory, macroeconomic and geopolitical factors have influenced respondents' short-term sentiment."
Château noted that as sustainable investment strategies continue to mature and a focus on governance grows, «the quest for the right data is likely to become an even greater priority for asset owners».
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