On October 5, 2012 Ceres published a report entitled, “Incorporating Environmental, Social and Governance (ESG) Factors into Investing – A Survey of Investment Consultant Practices.”
The report presents the findings of a survey of 14 “representative” investment consultants serving a range of US-based clients. According to the executive summary, the “report shows that investment consultants retained by major asset owners such as pension funds, foundations and endowments have generally not considered environmental, social and governance (ESG) risks and opportunities as they advise their investor clients on their portfolios. Of the 13 U.S. and international consulting firms surveyed for the report, few have developed expertise in ESG investing, fewer than half believe environmental and social factors can impact long-term financial risk and reward, and only one integrates ESG into its risk/return and asset allocation modeling.” Also, “Interestingly, the consultants who clearly articulated the belief that ESG factors matter to long term financial risks and returns tended to be global firms serving non-U.S. clients as well as U.S.-based clients and, not surprisingly, were more likely to be PRI signatories.”
The report is available on the Ceres internet site. Please click here.