Given the growing spotlight on ESG factors and long-term value creation, EY conducted a survey of Canadian asset managers to better understand what their clients were asking them, how they are approaching ESG now and beyond, and how they are evolving their operating model as a result.
The survey results confirm the current diversity of strategy and value propositions, as well as the strong drivers of adoption and evolution.
Our key findings include:
- Most asset managers have been reactive to the market.
- The integration of ESG into investment decision-making is taking place at two levels:
- Across all products – only 50% indicated being fully integrated
- From the point of view of the sophistication and robustness of integration
- The majority of respondents anticipate developing more outcome-based products in the future, but their immediate focus is on integration.
- Institutional clients continue to drive the demand for modern ESG investing — that is, not using the traditional exclusionary approach — while ultra-high-net-worth clients are demanding the expansion of ESG propositions to include outcome-based products, and some are even hinting at philanthropic products.
- Discussions on future perspectives and challenges reinforced the fundamental need for quality and standardization of data and taxonomies