- Russell Investments’ 2023 Manager ESG Survey, now in its ninth year, continues to offer valuable insights into the evolving landscape of ESG practices within the investment management industry.
- Our survey covers a wide range of topics including ESG commitments, challenges, and reporting, Net Zero target setting, active ownership, and diversity.
- For active managers, key challenges include the availability of data, reporting standardization for corporates, and meeting diverse client needs. Nevertheless, our research shows that commitments to responsible investing reporting frameworks and initiatives continue to rise.
Introduced in the early 2000s and initially an esoteric term, ESG—standing for environmental, social, and governance criteria—has firmly embedded itself in mainstream discourse. Even so, the investment community continues to grapple with how to integrate ESG elements into their decision-making processes. Notably, while regions like Europe, Canada, and Australia have fortified their reporting mandates, the United States remains engaged in a contentious debate.
For investment professionals, key challenges to ESG integration include the availability of data, lack of standardized reporting for corporates, and meeting diverse client needs. Nevertheless, fewer managers are reporting that ESG considerations do not affect their investment decisions, and there is an upswing in commitments to responsible investing reporting frameworks and initiatives. Our research suggests that ESG has firmly established itself as a lasting force in the investment landscape.
Russell Investments’ 2023 Manager ESG Survey, now in its ninth year, continues to offer valuable insights into the evolving landscape of ESG practices within the investment management industry. Garnering results from 169 participants globally—a mix of equity, fixed income, real assets, and private markets asset managers—the survey offers a comprehensive view of industry-wide perspectives on ESG integration, the momentum toward net-zero objectives, diversity initiatives, and more. The participant roster is broad, encompassing a range of investment approaches from sustainable investing boutiques and large traditional managers. The collective assets under management (AUM) for 2023 was nearly $20 trillion, with entities ranging from firms with an AUM of less than $10 billion to those with over $500 billion. Geographical diversity is also evident, with a significant majority based in the U.S., but also strong participation from Europe, the UK, Australia, and New Zealand.