In previous surveys, investors said key drivers were risk mitigation and performance. In the latest survey, investors said their climate risk strategies are equally about creating real change.
The survey also found growing consensus that new benchmarks are needed, and that the preferred strategy is stewardship and engagement, not divestment.
“Asset owners say their responsibility to drive real change is as important as pure investment motivations. This is a major change in sentiment from previous years when such aims were minor factors in driving investing behavior,” the survey report said.
SSGA in mid-2021 surveyed senior investment executives with asset allocation responsibilities at more than 300 institutions with assets ranging from less than $1 billion to more than $20 billion, including private and public pension funds, sovereign wealth funds, endowments and foundations. Survey respondents were asked about their decarbonization goals, their views on benchmarks and ESG, and their top climate priorities.