27Four ESG Asset Manager Survey 2023
ESG has gone mainstream, but we're still struggling to measure the ESG impact of our investments, according to 32 asset managers managing R100 million.
The 27Four ESG Asset Manager Survey 2023 was conducted in May 2023 and surveyed 32 South African-domiciled asset managers overseeing South African fixed income and credit mandates of at least R100 million. The survey results provide insights into the current state of ESG investing in South Africa, including the following:
ESG is becoming increasingly mainstream: The survey found that the majority of asset managers (84%) now offer ESG products or services, up from 67% in 2022.
Investor demand for ESG is growing: The survey found that the majority of investors (77%) are interested in ESG investing, up from 69% in 2022.
Asset managers are still struggling to measure ESG impact: The survey found that the majority of asset managers (71%) are still struggling to measure the ESG impact of their investments.
The survey also found that there is a growing consensus among asset managers that ESG investing is not only good for the environment and society, but also good for business. The survey found that the majority of asset managers (81%) believe that ESG investing can help to improve investment performance.
The 27Four ESG Asset Manager Survey 2023 provides valuable insights into the current state of ESG investing in South Africa. The survey results suggest that ESG investing is becoming increasingly mainstream and that investor demand for ESG products and services is growing. However, the survey also found that asset managers are still struggling to measure ESG impact. This is an area where further research is needed.
Source: 27Four ESG Annual Asset Manager SurveySouth Africa Fixed Income, May 2023
Key findings from the survey:
The majority of asset managers (84%) now offer ESG products or services.
The majority of investors (77%) are interested in ESG investing.
Asset managers are still struggling to measure ESG impact.
The majority of asset managers (81%) believe that ESG investing can help to improve investment performance.
Implications for investors:
ESG investing is becoming increasingly mainstream and there is a growing consensus among asset managers that it can help to improve investment performance.
Investors who are interested in ESG investing should do their research to find asset managers who have a strong track record of integrating ESG factors into their investment process.
Investors should also be aware that ESG investing can be more expensive than traditional investing, so they should carefully consider the costs before investing.
