NCI: Over 90% of boutiques incorporate ESG in portfolios

90.5% incorporate ESG

Boutique asset management think tank New City Initiative (NCI) has found nearly double the amount of member firms are incorporating environmental, social and governance (ESG) factors into their portfolios compared to five years ago.

In its white paper, entitled The Evolution of ESG in Asset Management, the NCI found 90.5% of respondents include ESG in portfolios versus just 47.6% five years ago. Furthermore, 90.4% of member firms surveyed said they either are or intend to sign up to the United Nations' Principles for Responsible Investment. The key reason for the increase in ESG adoption, the paper found, was for risk management purposes, with 52.5% citing this, while 19.1% stating investor pressure and 19% highlighting return pressure. MSCI: How does ESG impact the performance of companies? Charles Gubert,...