As the Southeastern United States assesses the enormous human, economic, and property toll of Hurricane Helene, we are reminded that climate transition continues to be an important, material, and growing factor in investment portfolios.
According to the third annual Morningstar Voice of the Asset Owner Survey, climate transition readiness (or net-zero emissions) continues to be the most material environmental factor cited by asset owners globally when asked what is most important to their ESG-related investment approach. In the quantitative survey – which gathered responses from 500 asset owners representing combined assets under management of $18 trillion – 55% view the transition to net-zero emissions as most material to their investment decision making, up from 52% in 2023.
When viewed through a regional lens, the climate transition was cited as the top environmental factor this year in EMEA (Europe, the Middle East, and Africa) and Asia-Pacific; it was a close second to energy management in North America.
Thomas Kuh, Head of ESG Strategy, Morningstar Indexes:
“For the largest and most influential global institutional investors, climate is the most financially relevant topic within the environmental pillar of ESG. If climate is financially relevant for the largest and most influential institutional investors, we are certain that it is on the radar for the companies in which they invest.”
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