According to research by Morningstar Indexes, pension funds and other asset owners in North America and Europe are adopting sustainable investment practices for their portfolios. According to the “Voice of the Asset Owner” survey, based on 14 interviews with asset owners, pension funds viewed ESG investing as central to investing. Asset owners said the inclusion of ESG investments was driven both by their belief in sustainable investing and by client demand. Fund managers believe that ESG improves their investment processes and does not diminish investment returns. Although implementing ESG can be challenging due to changing definitions and standards, their clients see climate as a top concern and urge them to address global warming. As ESG has become a hot political topic in the United States, pension funds are ahead of ESG in their portfolios.
Finsum: Due to client demand and a belief in sustainable investing, more and more pension funds are incorporating ESG strategies as a core part of their portfolios.
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