Almost all advisors and asset managers need more and better information from companies about their ESG compliance in order to fully engage clients in ESG investing, according to a Cerulli Associates survey.

Ninety-four percent of the 436 advisors and asset manager surveyed say the fact that companies provide limited or selective information about their efforts to meet environmental, social and governance standards is a challenge in helping investors know where to put their assets.

Another large majority, 77 percent, says the information they are given is too subjective.

Cerulli’s Cerulli Edge report for June outlines the state of advisors involvement in ESG investing and the problems advisors and asset managers are faced with that inhibit increases in investing.

“Asset managers have prioritized incorporating ESG factors into their investment processes, but conversations with distribution partners have not necessarily led to actual investment among financial advisors” because of the challenges they find in the ESG market, Cerulli said.

“Cerulli argues that true ESG integration [in investing] requires the application of material ESG factors with intentionality, in a process driven by robust data that is aggregated from both proprietary and third-party sources,” the report said.

Sixty-five percent of advisors feel they do not have enough data from third-party analytics to know what companies are doing and another 59 percent question the credibility of the data they can get.

Similarly, 62 percent say it is a problem to get risk data and quantitative data about ESG efforts that they need to compare investments, and 53 percent say customizing portfolios for ESG investing for each client’s needs is difficult.

At the same time, advisors are under growing pressure to help clients with their ESG, impact and SRI (socially responsible investing) needs.

“Asset managers’ build-out of ESG capabilities has been well publicized over the past few years, with firms opting to build organically, acquire firms with longstanding roots in the space or hire specialist subadvisors to get ahead of perceived future demand,” the report explained.

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