The world’s biggest institutional investors say unequivocally that climate change is likely to affect the performance of investments over the medium term, a survey by Stanford University’s Graduate School of Business and the MSCI Sustainability Institute finds.
The 10 charts below illustrate the top takeaways from the survey. You can download the full results here.
The biggest institutional investors overwhelmingly see climate change as the sustainability issue most likely to affect the performance of investments in the next two to five years.
Source: Stanford-MSCI Sustainability Institute survey
Climate change tops the list of sustainability factors that institutional investors say they explicitly consider in investment decisions.
Source: Stanford-MSCI Sustainability Institute survey
Challenge and opportunity? Just 4% of the world’s biggest institutional investors say that climate risk is mostly reflected in asset prices today.
Source: Stanford-MSCI Sustainability Institute survey
The lion’s share of big institutional investors are analyzing the emissions of their investments, investing in clean-energy solutions and quantifying climate risk.
Source: Stanford-MSCI Sustainability Institute survey
Nearly three-quarters of institutional investors believe that companies will back their climate and social commitments with action.
Source: Stanford-MSCI Sustainability Institute survey
More than three-quarters of institutional investors on both sides of the Atlantic say that integrating sustainability criteria reduces tail risk, while nearly two-thirds say it reduces volatility.
Source: Stanford-MSCI Sustainability Institute survey
Nearly 60% of the world’s biggest institutional investors say that sustainability criteria are extremely or very important in their overall investment decision.
Source: Stanford-MSCI Sustainability Institute survey
More than two-thirds of institutional investors consider sustainability as one factor out of many in making an investment decision.
Source: Stanford-MSCI Sustainability Institute survey
77% of institutional investors say that ESG performance is industry-specific.
Source: Stanford-MSCI Sustainability Institute survey
The lion’s share of large institutional investors say that the quality of companies’ governance is most likely to affect the short-term performance of investments.
Source: Stanford University-MSCI Sustainability Institute survey
