Challenges

Across all regions, a lack of universal standards, limited track records, and a lack of expertise present challenges to investing in climate-related approaches.

Takeaway

Key performance indicators or other metrics that quantify climate risk, opportunities, and outcomes could be game changers.

Survey questions

Please select the potential barriers or challenges for your organization to invest in climate-related opportunities.
Please indicate how important it is for managers to offer the following climate capabilities.

FINDINGS

Asset owners cite several barriers to investing in climate approaches

A lack of standards, limited track records, and a dearth of expertise present challenges. Asset owners also cite a lack of high-quality investment strategies that meet their needs.

This suggests the growing importance of increasing climate offerings that incorporate key performance indicators and relevant metrics that help quantify climate risk, opportunities, and outcomes.

“Delivering on ESG: 2022 ESG Research Results – Global,” Coalition Greenwich, a division of CRISIL, an S&P Global Company, November 2022. Total respondents globally: 305 | North America: 102 | Europe: 127 | Asia: 76.

Perceived challenges to climate investing vary by region

Survey question

On a scale of 1–5, where 1 is “Strongly disagree” and 5 is “Strongly agree,” please indicate if the following statements reflect potential barriers or challenges for your organization to invest in, or invest more in, climate-related opportunities.

The survey revealed some nuances in barriers to the adoption of climate investing by global region. Compared to North America and Europe, more asset owners in APAC perceive greater potential challenges to climate investing.

This might suggest that providers should offer more targeted approaches to their APAC clients.

Asset owners value transparency and stewardship
around climate change

Reporting on portfolio-specific climate risks, company engagement, and proxy voting are valued capabilities, especially in Europe. More than half of half of owners in APAC cite managers’ net-zero or other firmwide decarbonization efforts as important.