Understanding Institutional Investors’ Perspective on ESG Ratings
Research Paper
December 4, 2023
Preview
Investors are increasingly integrating ESG factors into their investment process, as evidenced by the rapid growth in ESG-related assets under management globally. ESG integration influences the strategic objective setting, portfolio management, risk management and stewardship and engagement efforts of investors. Many corporate issuers across regions are therefore expecting more scrutiny from their investors and boards on their ESG and sustainability strategies. Understanding ESG risks and opportunities from the perspective of investors could be valuable for issuers.
This report aims to provide issuers with a sense of how investors may think about ESG factors across the entire investment process. The report also highlights how several academic studies have found MSCI ESG Ratings to be at the forefront of capturing potentially financially material ESG risks and opportunities in equities and corporate bonds. Our research shows that MSCI ESG Ratings have also positively correlated with company profitability and stock performance.
ESG integration into the investment process
Source: MSCI ESG Research
Read the full paper
Read the full paper
Provide your information for instant access to our research papers.
Webinar: MSCI Q4 Global Issuer Virtual Event - ESG Investing Landscape and Key Imperatives for Issuers
Join MSCI ESG Research for a review of the ESG Integration trends globally and investors' perspectives on ESG Ratings, as well our recent initiatives on issuer engagement.
More Global Issuers Have Engaged on ESG Ratings
Corporate issuers across market-capitalization ranges, regions, countries and sectors are increasingly seeking information, offering feedback and sharing updates related to ESG and climate data. What have been the areas of focus?
Resources for Issuers
Institutional investors are increasingly integrating environmental, social and governance (ESG) and climate considerations into their investment decision-making processes.
The content of this page is for informational purposes only and is intended for institutional professionals with the analytical resources and tools necessary to interpret any performance information. Nothing herein is intended to recommend any product, tool or service. For all references to laws, rules or regulations, please note that the information is provided “as is” and does not constitute legal advice or any binding interpretation. Any approach to comply with regulatory or policy initiatives should be discussed with your own legal counsel and/or the relevant competent authority, as needed.