Stockholm (NordSIP) – Despite strong regulatory and investor demand for more environmentally friendly investment strategies, one of the recurring complaints we hear about it is concerned with the poor quality of data available to investors. A new study by DWS and Create Research has put a figure on this cost.
According to survey results of 131 pension funds with €2.25 trillion in assets under management, 56% of respondents still lack specific climate-related allocation for their passive investments, while 60% say data and ambiguous definitions constrain them. Only 22% of the respondents reported climate-related investments representing over 15% of the total portfolio. More specifically, only 26% of plans said they commit over 15% of their passive funds to climate-friendly strategies.
“This survey shows how sustainability is moving up the agenda for pension funds globally, and how it is being worked into broader moves to embrace passive investment solutions,” says Simon Klein, Head of Passive Distribution, Europe and Asia-Pacific, at DWS.
On a more positive note, the report notes that as many as 65% of the pension funds surveyed expect their climate-related passive investment to increase in the next three years. While over a third expect them to stay static, none expect them to fall.