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Around 84% of institutional investors in APAC incorporate ESG strategies: report

LiveMint logoLiveMint 24-05-2017 Ami Shah

Mumbai: Around 84% of institutional investors in Asia-Pacific (APAC) region currently incorporate environmental, social and corporate governance (ESG)-related strategies into their investing, ahead of their North American and European counterparts, according to BNP Paribas Securities Services.

In a report released on Wednesday, the global custodian and securities services provider said it found that in comparison, 82% and 70% of North America-based and Europe-based institutional investors surveyed, respectively, currently incorporate ESG into their investment decision making.

According to the report, 46% of APAC institutional investors felt environmental considerations were the most important, compared with 29% for corporate governance and 25% for social concerns.

While across APAC, a lack of robust data was cited as the most significant barrier to further incorporation of ESG, with 61% of institutional investors agreeing.

However, APAC’s institutional investors are confident they will overcome this challenge, as in two years, only 9% expect data to remain a barrier to further ESG incorporation, the report said.

That said, a total of 31% of global asset managers worried about mounting costs incorporating ESG

BNP Paribas Securities Services surveyed more than 460 institutional owners and asset managers, representing about $5.4 trillion in assets under management.

Also, across APAC, 135 institutional owners and managers were included, drawn from China, Hong Kong, Japan, India, Malaysia, Singapore, Australia and New Zealand, representing $1.4 trillion in assets under management.

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