SEO Riders:
– BNP Paribas 2023 ESG Global Survey Highlights
- – Rise in Institutional Impact Investing and Net-Zero Commitments
- – Challenges in ESG Data Quality and Biodiversity Integration
According to BNP Paribas’s 2023 ESG Global Survey, institutional investors are increasingly channeling capital into investments that yield measurable positive impacts alongside financial returns. The survey, encompassing 420 asset owners, managers, hedge funds, and private equity firms managing a combined $51.2 trillion in assets, indicates that 41% of respondents currently prioritize net-zero commitments, with an additional 48% planning to do so within the next two years—a significant rise from 18% in 2021. Impact investing is also on the rise, with 54% of investors expecting to adopt this approach in the next two years, up from 45% presently.
Despite this momentum, challenges persist, notably the quality and consistency of ESG data. A substantial 71% of respondents identify inconsistent and incomplete ESG data as a significant barrier to broader adoption. To mitigate this, 65% of investors utilize multiple data sources, and 37% have developed proprietary research methodologies. Furthermore, 66% acknowledge the need to better address biodiversity loss and other environmental goals, although data in these areas remains underdeveloped. Active ownership is poised to play a crucial role, with 45% of investors planning to emphasize it as a key ESG objective in the next two years.
