This report, a product of the partnership between CFA Institute and Principles for Responsible Investment, is intended to help investors better understand how professional investors are integrating ESG factors into their analyses and investment processes. This understanding, in turn, can help investors determine how to integrate ESG analysis into their own investment processes, and how to do so in a manner that makes sense for them.
The report also includes:
- Impact of ESG Factors on Capital Markets and Investment Practices: Survey Data. We convey and comment on the results of regional and market surveys that provide respondents’ views of the current and future impact of ESG factors on share prices, corporate bond spreads, and sovereign debt yields in their country’s capital markets. We analyze how investors in the Americas as a whole, as well as in Brazil, Canada, and the United States in particular, are and are not integrating ESG in the investment process. These subsections provide readers with a snapshot of current practices in ESG integration.
- Drivers of and Barriers to ESG Integration: Survey Data and Workshop Feedback. We held workshops in Brazil, Canada, and the United States to discuss with local practitioners the specific level and methods of ESG integration in each market. Our intent is to help readers better understand the unique context of ESG integration in their own markets as well as some of the universal drivers of and barriers to ESG integration.
- Trends in ESG Company Data: Equities and Fixed Income. These subsections highlight the level of ESG company disclosure in each market. We analyzed how the level of ESG data has changed over a five-year period across sectors and between listed companies of different size.
- Investment Practices of Local Practitioners: Equities and Fixed Income. These subsections provide readers with an overview of current investment practices in each market, creating a unique opportunity for practitioners to compare their ESG integration techniques and tools with those of their peers.
- Interviews with Major Market Players: In each market we interviewed at least one major market player to give readers more detailed examples of the availability of ESG company data and how some practitioners integrate ESG data into the investment process.