BlackRock’s latest client survey has found that climate-related risks are now the top sustainability concern for the vast majority of its customers.
Almost 88 per cent of BlackRock clients have put climate-related risks at the top of their portfolio concerns, while 75 per cent now use or would considering using an integrated approach to accounting for ESG risks in their portfolios.
“The tectonic shift we identified earlier this year has really taken hold, as the convergence of political and regulatory pressures, technological advancements and client preferences have pushed sustainability into the mainstream of investing,” said BlackRock chief client officer Mark McCombe.
“The results of our survey show this sustainable transition is occurring all around the world.”
However, more than half of respondents (53 per cent) said that concerns around “poor quality or availability of ESG data and analytics” were their biggest barrier to adopting sustainable investing practices.
“There is no doubt that the quality and availability of data has significantly increased in the last decade, allowing investors to make more informed investment decisions as a result. Yet, there is considerable agreement among institutional investors that this is an area that requires further focus,” BlackRock said.
Concerns over social issues such as diversity and inclusion are also rising, with 58 per cent of respondents expecting them to be ESG cornerstones in the next three to five years.
The survey covered 4256 investors in 27 countries, including corporate and public pension plans, asset managers, foundations, and global wealth managers with US$25 trillion in assets under management.