Climate is in the driver’s seat when it comes to ESG concerns, according to Morningstar’s second annual Voice of the Asset Owner Survey. When asked whether environmental, social or governance factors have become more or less material to investment policy in the past year, 52% of global asset owners answered that environmental factors have become more material, while 38% said social, and 43% governance.
500 asset owners asked whether environmental, social, and governance factors have become more or less material in the past year (%)
Source: Morningstar Voice of the Asset Owner Survey – October 2023
When Morningstar took the climate question to the next level and asked which environmental factor asset owners consider the most material, carbon emissions was the leader, followed by energy management and sustainable food and agriculture.
Thomas Kuh – Head of ESG Strategy, Morningstar Indexes, said:
"Given the urgency of tackling climate change, it is not surprising that asset owners view the transition to net zero emissions as most material to their investment decision-making. This survey reinforces with precision what we are hearing anecdotally from asset owners."
Arnold Gast – ESG Research Director, Sustainalytics, said:
“Asset owners are incredibly committed to making progress toward net zero. We find that our asset owner clients are constantly asking us for better data, research and engagement services to help reach their climate-related goals.”
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