In 2017, institutional investors may start applying differentiating strategies while incorporating ESG data across asset classes and risk calculations, according to a recent report by MSCI.
One anticipated trend, in 2017, is the conversation shifting from “how” to use ESG to “where” to use ESG, one that will manifest in diverse applications in portfolio strategies (see chart).
***
The newly published paper, “2017 ESG Trends to Watch,” which explores how the major ESG trends will affect the capital markets for the next decade. According to the report, in 2017 some of the world’s largest investors may differentiate themselves by gearing toward the long view.
The researchers also see increased adoption of corporate disclosures targeting UN Sustainable Development Goals as a boost for institutions that aim to broaden their programs for impact investing.
In China and India, domestic and global standards will likely converge in 2017 as companies in these markets deepen their understanding of standards required to attract sustainable finance from international investors.
