The rise of Smart Sustainability

ESG and Smart Beta: 2020 global survey findings from asset owners

Smart Sustainability: global asset owner survey

Our annual survey of the market conducts in-depth research to better understand how the coming together of two trends—smart beta and sustainable investment—are perceived, considered and used by asset owners around the world. 

We are finding that over the last couple of years a growing number of institutional investors have taken the opportunity to integrate certain sustainability parameters—usually climate-related, but sometimes other ESG measures, too—when they have awarded new smart beta mandates. This has become a majority, the new normal, for new asset owner smart beta mandates. 

Five key findings:

  • Integration of ESG consideration into smart beta strategies reaches new high
  • EMEA leads the way in applying ESG considerations to smart beta
  • Climate risk is a “hot” topic 
  • Re-weighting or tilting approaches gain in popularity, bringing control and consistency 
  • The outlook for “smart sustainability” remains strong

Combining sustainable investment and smart beta

 

Asset owner considerations of sustainable investment approaches