msci-institute.com

These 10 charts show how the world’s biggest investors are integrating sustainability into their decision-making

The world’s biggest institutional investors say unequivocally that climate change is likely to affect the performance of investments over the medium term, a survey by Stanford University’s Graduate School of Business and the MSCI Sustainability Institute finds.

The 10 charts below illustrate the top takeaways from the survey. You can download the full results here.

The biggest institutional investors overwhelmingly see climate change as the sustainability issue most likely to affect the performance of investments in the next two to five years.

View chart page

The biggest institutional investors overwhelmingly see climate change as the sustainability issue most likely to affect the performance of investments in the next two to five years.

Source: Stanford-MSCI Sustainability Institute survey

Climate change tops the list of sustainability factors that institutional investors say they explicitly consider in investment decisions.

View chart page

Climate change tops the list of sustainability factors that institutional investors say they explicitly consider in investment decisions

Source: Stanford-MSCI Sustainability Institute survey

Challenge and opportunity? Just 4% of the world’s biggest institutional investors say that climate risk is mostly reflected in asset prices today.

Challenge and opportunity? Just 4% of the world’s biggest institutional investors say that climate risk is mostly reflected in asset prices today.

Source: Stanford-MSCI Sustainability Institute survey

The lion’s share of big institutional investors are analyzing the emissions of their investments, investing in clean-energy solutions and quantifying climate risk.

View chart page

The lion’s share of big institutional investors are analyzing the emissions of their investments, investing in clean-energy solutions and quantifying climate risk.

Source: Stanford-MSCI Sustainability Institute survey

Nearly three-quarters of institutional investors believe that companies will back their climate and social commitments with action.

View chart page

Nearly three-quarters of institutional investors believe that companies will back their climate and social commitments with action.

Source: Stanford-MSCI Sustainability Institute survey

More than three-quarters of institutional investors on both sides of the Atlantic say that integrating sustainability criteria reduces tail risk, while nearly two-thirds say it reduces volatility.

More than three-quarters of institutional investors on both sides of the Atlantic say that integrating sustainability criteria reduces tail risk, while nearly two-thirds say it reduces volatility

Source: Stanford-MSCI Sustainability Institute survey

Nearly 60% of the world’s biggest institutional investors say that sustainability criteria are extremely or very important in their overall investment decision.

View chart page

Nearly 60% of the world’s biggest institutional investors say that sustainability criteria are extremely or very important in their overall investment decision

Source: Stanford-MSCI Sustainability Institute survey

More than two-thirds of institutional investors consider sustainability as one factor out of many in making an investment decision.

View chart page

: More than two-thirds of institutional investors consider sustainability as one factor out of many in making an investment decision.

Source: Stanford-MSCI Sustainability Institute survey

77% of institutional investors say that ESG performance is industry-specific.

77% of institutional investors say that ESG performance is industry-specific.

Source: Stanford-MSCI Sustainability Institute survey

The lion’s share of large institutional investors say that the quality of companies’ governance is most likely to affect the short-term performance of investments.

View chart page

The lion’s share of large institutional investors say that the quality of companies’ governance is most likely to affect the short-term performance of investments.

Source: Stanford University-MSCI Sustainability Institute survey