Integration of ESG into Institutional Investor Processes

Integration of ESG into Institutional Investor Processes


ESG aspects are increasingly being integrated into the processes of institutional investors. This is the core message of the Global ESG Survey by BNP Paribas! Moreover, investors are increasingly relying on the ESG expertise of partners and service providers.





Integration of Different ESG Approaches According to the study, the most common ESG approaches are “ESG Integration” (70%) and “Negative Screening” (54%). However, the importance of these ESG orientations is declining. On the other hand, approaches such as “Thematic Investment,” “Active Ownership,” and “Impact Investing” are gaining in relevance.

Integration of ESG into Institutional Investor Processes



Interestingly, over half of the investors use ESG data and expertise in their portfolio management: 42% integrate ESG into their risk management and 37% into their compliance processes. Investors in the Asia-Pacific region are particularly advanced in this regard, while North America is still somewhat lagging. Additionally, 35% of institutional investors consider ESG requirements in their strategic asset allocation, and 31% consider ESG requirements in their reporting processes.


Integration of ESG into Institutional Investor Processes



Demand for ESG Experts by Institutional Investors

About 25% of institutional investors use bank partners for ESG policies and reporting. Another 22% consider this especially to meet regulatory reporting requirements. External support is also sought for the development of ESG products, the procurement and use of ESG data, and the monitoring of ESG investment guidelines.


Why don’t institutional investors increasingly rely on in-house solutions? According to the study and investors’ own assessment, only about half of the investors have the necessary ESG knowledge and data.


And what criteria are used to select these experts? Institutional investors place the greatest value on the transparency of data methodology (50%) for the selection of their partners, followed by the latter’s ESG reputation (41%). In North America, particular emphasis is placed on transparent data methodology, while in the Asia-Pacific region, the brand of the partner is more crucial.



The survey results make clear that ESG requirements are being incorporated into the activities of institutional investors ever more comprehensively and have become an integral part of the investment industry. Nevertheless, the integration process is not yet complete and, in many cases, proceeds gradually and in isolation. Particularly in Europe and the Asia-Pacific region, ESG has become a cornerstone of the way institutional investors operate, while in North America there is yet a backlog considering this.



ESG zieht immer mehr in die Prozesse institutioneller Investoren ein – dpn (

BNP Paribas ESG Global Survey: Institutionelle Anleger beschleunigen ihre Strategien für den Übergang zu einer CO2-armen Wirtschaft – Securities Services (