Corporate funds saw a decrease in ESG adoption year over year, from 25% in 2017 to 20% in 2018. Most of the decline can be attributed to the adoption rate of corporate defined contribution plans, with only 9% indicating they incorporate ESG into the investment decision-making process.
The Report, based on data collected and analyzed through the beginning of 2018, disclosed that assets linked to sustainable, responsible and impact investing (SRI) strategies have reached $12.0 trillion, up 38% percent from $8.7 trillion in 2016.
More than one-third of public funds reported incorporating ESG (39%) in the 2018 survey, up from 35% in 2017. And large funds tend to lead their smaller counterparts: Nearly three-quarters of the largest respondents ($20 billion or greater) have incorporated ESG factors into investment decisions.
The 2018 report identified $11.6 trillion in ESG incorporation assets under management at the outset of 2018 held by 496 institutional investors, 365 money managers and 1,145 community investing financial institutions.