Callan's 9th Annual ESG Survey Shows Record Number Incorporating ESG into Investment Decisions Since Survey Inception

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Nov 08, 2021, 07:30 ET

SAN FRANCISCO, Nov. 8, 2021 /PRNewswire/ -- Callan, a leading institutional investment consulting firm, announced the results of its ninth annual ESG Survey, revealing a record 49% of investors incorporating environmental, social, and governance (ESG) factors into investment decision-making—up from 22% in 2013.

Key Findings:

The survey found 49% of institutional investors incorporated ESG factors into investment decisions, which represents a 123% increase since the survey's 2013 inception.
40% of respondents not yet incorporating ESG factors into investment decisions are considering it, which is the highest rate in the survey's history.
Over 50% of respondents looked to incorporate ESG factors to either align their portfolio with the organization's values (55%) or to meet their fiduciary responsibility (54%).
61% of those that incorporated ESG considered ESG factors with every investment/manager selection.
55% of those incorporating ESG did so in the past five years.

"We're seeing the highest rate of ESG incorporation in the nine-year history of the survey, plus another 40% of investors considering it," said Tom Shingler, senior vice president and leader of Callan's ESG team. "This shows a strong secular trend toward ESG incorporation in the face of regulatory headwinds under the prior presidential administration. With the proposed ESG and proxy voting rule from the U.S. Department of Labor, the pace of adoption could accelerate from here."

The survey was conducted from May 25-June 25, 2021, and reflects input from 114 unique U.S. institutional investors on their approach to ESG factors when evaluating investments. The survey includes responses from public and corporate defined benefit and defined contribution plans, as well as from endowments and foundations. Respondents also represented plans of all sizes, ranging from small (<$500mm) to large (>$20bn).

Find the summary blog post and full survey here.

About Callan

Callan was founded as an employee-owned investment consulting firm in 1973. Ever since, we have empowered institutional clients with creative, customized investment solutions backed by proprietary research, exclusive data, and ongoing education. Today, Callan advises on more than $3 trillion in total fund sponsor assets, which makes it among the largest independently owned investment consulting firms in the U.S. Callan uses a client-focused consulting model to serve pension and defined contribution plan sponsors, endowments, foundations, independent investment advisers, investment managers, and other asset owners. Callan has six offices throughout the U.S. Learn more at callan.com.

Media Contact:

Elizabeth Anathan
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415-274-3020

SOURCE Callan LLC