More institutional investors are committing to zero net returns and focusing more on biodiversity, according to Robeco’s 2023 Global Climate Survey released Tuesday.
These investors were also found to have an eye on renewables and are separated by region by ESG policy.
The survey, conducted by CoreData Research for Robeco, covered 300 large institutional and wholesale investors in Europe, North America, Asia Pacific and South Africa with $27.4 trillion in total assets under management.
In terms of climate change, the study found that by 2050, 48% of investors will be committing to zero emissions, up from 45% the previous year, with 55% of them evaluating how their portfolios impact carbon emissions.
The numbers were lower when it came to measuring indirect Scope 3 emissions: only 20% of investors did so, and only 27% reported having a forward-looking view of the emission pathways of the companies they invest in. investors reported integrating climate change scenarios into capital market assumptions or that they are likely to do so within a year, and 29% reported adopting or planning to adopt climate change indicatives during that time period.
Biodiversity is a concern for 48% of investors who indicated its importance to their investment policy. Equities, green bonds and private markets were the leading asset classes for biodiversity integration, while lack of suitable data, ratings and in-house expertise were cited as the biggest barriers.
Survey results a year after the start of the energy crisis showed that 51% of investors are interested in renewable energy, but only 30% are accelerating the decarbonization of their portfolios. A 2023 survey found that 38% of European investors allowed higher fees to oil and gas companies, 48% of North American investors and 59% in Asia Pacific.
When it comes to the increasing politicization of ESG in America, there is an even wider gap between North American investors and others, with 47% of investors in North America worried about the impact on their investment plans compared to 30% in Europe. The reverse was true for investors in Europe and Asia Pacific, with 63% and 57% respectively more concerned about political pressure due to a failure to act on ESG and the climate, according to the Robeco survey.