Active Ownership, Growing Materiality & Data Demand Drive ESG Implementation for Asset Owners
Morningstar's third annual Voice of the Asset Owner survey reveals expanding ESG materiality, rising active ownership, and growing demand for improved ESG data among asset owners. The survey, covering 500 asset owners across 11 countries with combined assets of $18 trillion, shows:
1. 67% of asset owners say ESG has become more material in the past year, with an average of 42% of AUM incorporating ESG factors.
2. Climate remains the top ESG concern, but Social and Governance factors have seen significant increases in materiality.
3. 78% of asset owners view active ownership as useful in driving ESG implementation, with direct engagement considered the most effective tactic.
4. 43% of asset owners consider ESG data the most valuable component for implementing ESG strategies, compared to 24% for ratings and 23% for indexes.
5. Asset owners are optimistic about AI's potential impact on ESG data provision, with over 70% hoping for increased AI adoption in the next five years.
Il terzo sondaggio annuale Voice of the Asset Owner di Morningstar rivela un'espansione della materialità ESG, un aumento della proprietà attiva e una crescente domanda di migliori dati ESG tra i proprietari di asset. Il sondaggio, che copre 500 proprietari di asset in 11 paesi con un patrimonio combinato di 18 trilioni di dollari, mostra:
1. Il 67% dei proprietari di asset afferma che l'ESG è diventato più rilevante nell'ultimo anno, con una media del 42% dei AUM che incorpora fattori ESG.
2. Il clima rimane la principale preoccupazione ESG, ma i fattori sociali e di governance hanno registrato significativi aumenti nella loro rilevanza.
3. Il 78% dei proprietari di asset considera la proprietà attiva utile per promuovere l'implementazione dell'ESG, con il coinvolgimento diretto considerato la tattica più efficace.
4. Il 43% dei proprietari di asset ritiene che i dati ESG siano il componente più prezioso per implementare strategie ESG, rispetto al 24% per le valutazioni e al 23% per gli indici.
5. I proprietari di asset sono ottimisti riguardo all'impatto potenziale dell'IA sulla fornitura di dati ESG, con oltre il 70% che spera in un aumento dell'adozione dell'IA nei prossimi cinque anni.
La tercera encuesta anual Voice of the Asset Owner de Morningstar revela una expansión de la materialidad ESG, el aumento de la propiedad activa y una creciente demanda de mejores datos ESG entre los propietarios de activos. La encuesta, que abarca 500 propietarios de activos en 11 países con activos combinados de 18 billones de dólares, muestra:
1. El 67% de los propietarios de activos dice que ESG se ha vuelto más material en el último año, con un promedio del 42% de AUM incorporando factores ESG.
2. El clima sigue siendo la principal preocupación ESG, pero los factores sociales y de gobernanza han visto aumentos significativos en su materialidad.
3. El 78% de los propietarios de activos considera que la propiedad activa es útil para impulsar la implementación de ESG, con el compromiso directo considerado la táctica más efectiva.
4. El 43% de los propietarios de activos considera que los datos ESG son el componente más valioso para implementar estrategias ESG, en comparación con el 24% para calificaciones y el 23% para índices.
5. Los propietarios de activos son optimistas sobre el impacto potencial de la IA en la provisión de datos ESG, con más del 70% esperando un aumento en la adopción de IA en los próximos cinco años.
모닝스타의 제3회 자산 소유자 의견 조사는 ESG의 중요성이 확대되고, 능동적 소유권이 증가하며, 자산 소유자들 사이에서 향상된 ESG 데이터에 대한 수요가 증가하고 있음을 보여줍니다. 이 조사는 11개국의 500개 자산 소유자를 대상으로 하며, 총 자산 규모는 18조 달러입니다. 조사 결과는 다음과 같습니다:
1. 67%의 자산 소유자가 지난 한 해 동안 ESG가 더욱 중요해졌다고 응답했으며, AUM의 평균 42%가 ESG 요소를 통합하고 있습니다.
2. 기후문제가 여전히 주요 ESG concern으로 남아 있지만, 사회 및 거버넌스 요소들도 중요성이 크게 증가했습니다.
3. 78%의 자산 소유자는 능동적 소유권이 ESG 구현에 도움이 된다고 생각하며, 직접적인 참여가 가장 효과적인 전술로 여겨집니다.
4. 43%의 자산 소유자는 ESG 데이터가 ESG 전략을 구현하는 데 가장 가치 있는 요소라고 평가하고 있으며, 평가와 지수는 각각 24%와 23%입니다.
5. 자산 소유자들은 AI가 ESG 데이터 제공에 미칠 잠재적 영향에 대해 낙관적이며, 70% 이상이 향후 5년 내에 AI 채택이 더 증가하기를 희망하고 있습니다.
La troisième enquête annuelle Voice of the Asset Owner de Morningstar révèle une expansion de la matérialité ESG, une augmentation de la propriété active et une demande croissante de meilleures données ESG parmi les propriétaires d'actifs. L'enquête, couvrant 500 propriétaires d'actifs dans 11 pays avec des actifs combinés de 18 billions de dollars, montre :
1. 67 % des propriétaires d'actifs déclarent que l'ESG est devenu plus matériel au cours de l'année passée, avec une moyenne de 42 % des AUM intégrant des facteurs ESG.
2. Le climat reste la principale préoccupation ESG, mais les facteurs sociaux et de gouvernance ont connu des augmentations significatives de matérialité.
3. 78 % des propriétaires d'actifs estiment que la propriété active est utile pour favoriser la mise en œuvre de l'ESG, le dialogue direct étant considéré comme la tactique la plus efficace.
4. 43 % des propriétaires d'actifs considèrent que les données ESG sont le composant le plus précieux pour mettre en œuvre des stratégies ESG, contre 24 % pour les notations et 23 % pour les indices.
5. Les propriétaires d'actifs sont optimistes quant à l'impact potentiel de l'IA sur la fourniture de données ESG, plus de 70 % espérant une adoption accrue de l'IA au cours des cinq prochaines années.
Die dritte jährliche Umfrage Voice of the Asset Owner von Morningstar zeigt eine wachsende ESG-Materialität, zunehmendes aktives Eigentum und eine steigende Nachfrage nach verbesserten ESG-Daten unter den Vermögensverwaltern. Die Umfrage, die 500 Vermögensverwalter aus 11 Ländern mit einem Gesamtvermögen von 18 Billionen US-Dollar umfasst, zeigt:
1. 67% der Vermögensverwalter geben an, dass ESG im vergangenen Jahr an Bedeutung gewonnen hat, wobei im Schnitt 42% des AUM ESG-Faktoren einbeziehen.
2. Klimafragen bleiben das größte ESG-Anliegen, aber soziale und Governance-Faktoren haben einen erheblichen Anstieg der Relevanz verzeichnet.
3. 78% der Vermögensverwalter halten aktives Eigentum für nützlich, um die Umsetzung von ESG voranzutreiben, wobei direkte Engagements als die effektivste Strategie angesehen werden.
4. 43% der Vermögensverwalter betrachten ESG-Daten als das wertvollste Element zur Umsetzung von ESG-Strategien, im Vergleich zu 24% für Bewertungen und 23% für Indizes.
5. Vermögensverwalter sind optimistisch hinsichtlich des potenziellen Einflusses von KI auf die Bereitstellung von ESG-Daten, wobei über 70% auf eine steigende KI-Adoption in den nächsten fünf Jahren hoffen.
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Morningstar’s third annual global asset owner survey finds ESG materiality broadening, active ownership rising and demand for improvements in ESG data growing.
The global quantitative survey, conducted by Morningstar Indexes and Morningstar Sustainalytics, included 500 asset owners (AOs) across 11 countries in
Thomas Kuh – Head of ESG Strategy, Morningstar Indexes, said: “Findings from our third annual Morningstar Voice of the Asset Owner Survey reaffirm many of our historical observations while uncovering areas of notable change for this important cohort. ESG materiality, still strong, is broadening and deepening while fiduciary duty continues to be driven by financial materiality. In addition, active ownership is alive and well, with direct engagement considered the most impactful tactic. Also, notably, while asset owners continue to use ESG data, ratings and indexes to implement their strategies, they increasingly recognize data as the most useful.”
ESG Materiality – The Compounding Effect.
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More than two-thirds of AOs surveyed (
67% ) say ESG has become more material in the past year, with an average of42% of AUM incorporating ESG factors, a four percentage point increase since 2022.Europe is the major driver, increasing from36% in 2022 to45% in 2024. - While climate is still king and continues to grow (+12 percentage points in the last year), ESG has moved beyond just “E” in the eyes of AOs, with significant materiality increases for Social (+20 percentage points) and Governance (+12 percentage points).
- Climate transition readiness remains the most material Environmental factor, with labor practices and business ethics headlining material concerns for Social and Governance, respectively.
Fiduciary Duty – Driven by Financial Factors, Influenced by ESG Considerations.
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Financial considerations outweigh societal implications for AOs, with
72% considering single materiality relevant as compared to59% for double materiality. As AUM increases, the percentage selecting “very relevant” for double materiality increases, suggesting that larger AOs view themselves more as universal owners & are more likely to consider the broader impact of their investments on the world. -
More than half of AOs (
53% ) feel ESG considerations go hand-in-hand with the fulfillment of fiduciary obligations. -
When it comes to incorporating ESG considerations, nearly eight in 10 (
78% ) view active ownership as useful in driving the implementation of their ESG programs. The general consensus is that proxy voting is the least effective method of active ownership, while direct engagement with companies ranked as the most important and effective tactic across all regions.
ESG Market Maturity Brings a More Focused Set of ESG Data Demands.
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When asked to choose whether ESG data, ratings or indexes are the most valuable component for implementing an ESG strategy,
43% selected ESG data, as compared to24% selecting ESG ratings and23% selecting indexes as most valuable. One of two AOs surveyed in theUK (50% ),Germany (52% ) andChina (50% ) selected data as the most useful tool for ESG implementation. - While an increasing percentage of AOs surveyed believe ESG ratings, data and indexes have improved over the last five years, they are still looking for increased accuracy and more standardized, relevant reporting (cited as a barrier over the past two years). AOs hold a range of key stakeholders such as ratings agencies, regulators and index providers accountable for driving improvements.
- AOs are excited about the potential impact of artificial intelligence, or AI, on ESG data provision, with more than seven in ten hoping AI adoption will increase in the next five years to help drive innovation in data collection, ESG analysis, ESG reporting, portfolio construction & index creation.
“As stewards of influential pools of global capital, asset owners take their fiduciary duties very seriously, and our survey findings underscore that,” said Paul Schutzman, Head of Institutional Solutions for Morningstar. “Notably, asset owners are asking for more granular ESG data to help support a broad range of ESG-related challenges.”
Arnold Gast, ESG Research Director at Morningstar Sustainalytics, remarking on the broadening and deepening of ESG materiality for asset owners, said “the expanding scope of ESG investment demands has raised the bar for ESG research providers. Asset owners need more holistic and extensive ESG quantitative metrics and qualitative analysis.”
About Morningstar Indexes and Morningstar Sustainalytics
Morningstar Indexes and Morningstar Sustainalytics are aligned to provide a more holistic and robust ESG offering to Morningstar clients. This growing collaboration includes ESG-related products, insights and research.
As the fastest-growing global index provider for the last three years according to Burton-Taylor International Consulting, Morningstar Indexes was built to keep up with the evolving needs of investors—and to be a leading-edge advocate for them. Morningstar's rich heritage as a transparent, investor-focused leader in data and research uniquely equips Morningstar Indexes to support individuals, institutions, wealth managers and advisors in navigating investment opportunities across all major asset classes, styles, and strategies. From assessing risk and return with traditional benchmarks to helping investors effectively incorporate ESG objectives into their investment process, our range of index solutions spans an investment landscape as diverse as investors themselves. We help investors answer today's increasingly complex questions so that they can more easily reach tomorrow's goals. Please visit indexes.morningstar.com for more information.
Morningstar Sustainalytics is a leading ESG data, research, and ratings firm that supports investors around the world with the development and implementation of responsible investment strategies. For more than 30 years, the firm has been at the forefront of developing high-quality, innovative solutions to meet the evolving needs of global investors. Today, Morningstar Sustainalytics works with hundreds of the world's leading asset managers and pension funds who incorporate ESG information and assessments into their investment processes. The firm also works with hundreds of companies and their financial intermediaries to help them consider material sustainability factors in policies, practices, and capital projects. Morningstar Sustainalytics has analysts around the world with varied multidisciplinary expertise across more than 40 industry groups. For more information, visit www.sustainalytics.com.
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment insights in
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Tim Benedict, +1 203 339-1912 or tim.benedict@morningstar.com
Orion Sang, Edelman Smithfield, + 734 678-2187 or Orion.Sang@edelman.com
Source: Morningstar, Inc.
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