How Institutional Investors are Shifting Assets into ESG Investing

Jan 25, 2021 10:10 AM ET

Institutional Investors are Shifting Assets into ESG Investing

The US SIF Foundation's Trends Report conducted research on 530 institutional asset owners with $6.2 trillion in ESG assets, equivalent to 51 percent of the $12.01 trillion that money managers identified as institutional assets. Because money managers do not disclose information about their institutional clients, the data received from our direct research of institutional investors shows how and why they incorporate ESG criteria into their investment analysis and portfolio selection.

The institutional ESG incorporation trends revealed through this research should be understood as representing the most transparent institutional investors in the United States. The group included institutional asset owners and plan sponsors such as public funds, insurance companies, educational institutions, philanthropic foundations, labor funds, hospitals and healthcare plans, faith-based institutions, other nonprofits and family offices. 

Interestingly, here is how the trillions are invested in ESG categories (charts included) -  https://greenmoney.com/esg-incorporation-by-institutional-investors

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