Climate Action

Asset owner interest in Smart Sustainability reaches new highs

This year's FTSE Russell Smart Sustainability survey of global asset owners looks again at the evaluation and usage of sustainability considerations in asset owners' smart beta investment decisions.

  • 13 August 2020
  • FTSE Russell Research

This year's FTSE Russell Smart Sustainability survey of global asset owners looks again at the evaluation and usage of sustainability considerations in asset owners' smart beta investment decisions.

With each passing year there is more to be learnt about asset owners’ awareness and behaviors related to the combination of smart beta and sustainability considerations.

Covid-19 has certainly focused investors on ESG aspects and, in addition, the recent social unrest has sharpened focus on factors around social and diversity policies, and their impact on markets and company performance. In these turbulent times, this year’s survey results are a striking reminder that sustainable investment is becoming an ever more important consideration for asset owners.

Key findings:

  • Smart Sustainability is on the rise again: Among those global asset owners who are using and/or evaluating smart beta strategies, nearly 60% anticipate applying sustainability/ESG considerations to their smart beta strategy of choice.
  • EMEA leads the way in applying ESG considerations to smart beta: Over 80% of EMEA asset owners evaluating or using smart beta expect to apply sustainability/ESG considerations to smart beta, which is up from 73% last year.
  • Climate risk is a key topic: Among those who anticipate applying ESG/sustainability to their smart beta strategy, 64% anticipate applying climate/ carbon themes to a smart beta strategy.

To download the full survey report click here.

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