HSBC’s seventh ESG Sentiment Survey reveals that global events are increasingly diverting attention from long-term sustainability challenges, and the push for standardised global ESG practices faces the challenge of accommodating local flexibility. The survey also indicates that as ESG practices evolve, integrity is likely to become a crucial focus for both investors and businesses.
Launched in 2022, HSBC’s ESG Survey aims to gauge investor perspectives on ESG investments. The latest edition, conducted from June 12 to July 12, 2024, includes insights from 165 respondents across 150 institutions with $6.7 trillion in assets under management (AUM).
When asked to rate the integration of ESG analysis into their investment decisions on a scale from 0 to 10, respondents scored it 4.4, slightly lower than the 4.5 rating from the June 2023 survey.
The survey finds that 58% of respondents use a global firm-wide approach to sustainability, while 45% have an engagement framework that is implemented, documented, and disclosed. Additionally, 36% believe that corporate sustainability integrity requires more regulation.
In Asia, investors see themselves as the primary drivers of sustainability, contrasting with the roles of governments and businesses in other regions. Many respondents find it challenging to adopt a fully unified global approach to ESG but support greater flexibility in disclosures to account for local conditions.
Despite potential revisions to stewardship codes, most respondents do not engage in corporate sustainability issues. Among those who do, a variety of engagement strategies are employed. Notably, 30% of respondents do not consider social issues explicitly, while the majority assess social issues from various perspectives, including global, regional, or country-specific angles. Specifically, 29% address social issues affecting investments, 14% focus on regional or country-level considerations, 8% take a global approach, and 29% do not address social issues at all.
