Callan's 2024 ESG Survey Shows 38% of Respondents Incorporating ESG into Investment Decisions, with Nonprofits the Highest at 56%

SAN FRANCISCO, Nov. 4, 2024 /PRNewswire/ -- Callan, a leading institutional investment consulting firm, announced the results of its 2024 ESG Survey, revealing that 38% of respondents incorporate environmental, social, and governance (ESG) factors into investment decisions. Adoption increased since the survey's 2022 publication (35%) but decreased from 2021, which saw the highest rate of ESG adoption in the survey's history (49%).

The survey is Callan's 11th edition highlighting current practices and opinions surrounding ESG factors among various types of U.S. institutional investors. Callan produces the survey every other year after doing so annually from 2013-2022. The survey alternates with the Asset Manager ESG Study, which will publish next in 2025.

"ESG adoption has increased since our first survey in 2013 (22%), and we observe a subset of investors taking further steps toward ESG integration at the total fund and implementation levels," said Tom Shingler, senior vice president and ESG practice leader at Callan. "This is also a time of federal regulatory uncertainty and increased politicization of ESG. Callan continues to view ESG through an investment lens, rather than political, and partners with clients to meet their investment objectives."

Key Findings

• 38% incorporated ESG factors into investment decisions—a 3% increase from 2022.
  
  
• 61% of foundations incorporated ESG, the highest adoption rate in 2024.
  
  
• 92% added ESG language to investment policy statements, making it the most common form of ESG integration.
   
• 63% cited aligning portfolios with organizational values as the reason for ESG incorporation.
   
• 32% included diversity, equity, and inclusion as part of their ESG focus—almost triple the amount in 2022 (11%).
   
• 67% considered ESG factors with every investment/manager selection.
  
  
• 49% of those not incorporating ESG noted they will not consider factors that are not purely financial in their investment decision-making.

Conducted in May and June 2024, the survey reflects input from 90 unique U.S. institutional investors. Respondents include public and corporate defined benefit and defined contribution plans, as well as endowments and foundations. Respondents represented plans of all sizes, ranging from small (<$500mm) to large (>$20bn). Callan is not able to survey all of the same respondents every year, contributing to variance in results. The survey participants include Callan clients and non-clients.

Find the summary blog post and full survey here.

About Callan
Callan was founded as an employee-owned investment consulting firm in 1973. Ever since, we have empowered institutional clients with creative, customized investment solutions backed by proprietary research, exclusive data, and ongoing education. Today, Callan advises clients with more than $3 trillion in total assets, which makes it among the largest independently owned investment consulting firms in the U.S. Callan uses a client-focused consulting model to serve pension and defined contribution plan sponsors, endowments, foundations, independent investment advisers, investment managers, and other asset owners. Callan has six offices throughout the U.S. Learn more at callan.com.

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SOURCE Callan LLC