By Bailey McCann
Source: Pensions & Investments
Institutional investors have focused on ESG for many years, but the industry may be reaching a tipping point in terms of the specificity and sophistication of ESG mandates. Against a backdrop of increasingly hard to ignore climate risks and social unrest brought on by the COVID-19 pandemic, the death of George Floyd and the war in Ukraine, institutions are moving away from passive exclusion strategies and leveraging new data to engage with management teams, set specific goals and measure impact.
Indications of these shifts are already underway. Thomas Shingler, Summit, N.J.-based senior vice president and ESG practice leader at consultant Callan LLC, said investors may individually be at different places on their environmental, social and governance journey, but broadly nearly all of them are engaged in data gathering, thinking through best practices and/or working through how to implement investment approaches that are measurable and provide value.