Embedding ESG Factors in investment mandates

PRI data gathered from a broad and geographically diverse asset owner base reveal that asset owners increasingly incorporate ESG policy expectations into contractual documentation, with investment mandates proving to be an exception. This finding is in line with the higher profile of ESG considerations in the relationship between asset owners and asset managers. Our research shows that this shift is attributable to changes in regulation, increasing interest from beneficiaries, evidence on investment returns and an increasing interest in incorporating sustainability outcomes.