Morgan Stanley: Firms failing to demonstrate ESG performance benefits to investors

Challenge to take-up by firms

Companies are failing to adequately demonstrate the performance benefits of ESG funds to improve the take-up by asset owners, despite a growing number of firms being keen to implement ESG considerations in their strategies.

A Morgan Stanley report entitled Sustainable Signals polled 118 public and corporate pensions, endowments, foundations, sovereign wealth entities, insurers and other large asset owners globally, including 67 in Europe.  Some 84% of respondents said they were considering or already pursuing ESG integration and nearly half are already implementing it in their investment decisions.  Which technology companies are most ESG-friendly? The biggest driver was risk management followed by the return potential and mission alignment. However, 24% said proof of financial performance presente...