Data snapshot: Sovereigns are adopting ESG

Sovereign wealth funds are major investors in private markets, and three-quarters of them now have an ESG policy, according to survey by fund management business Invesco.

“Many [SWFs] that had previously been resistant have come on board,” wrote the authors of Invesco’s 2022 Global Sovereign Asset Management Study, which covers all asset classes and does not separate out private markets. “For some, the reputational risk of swimming against the tide has been a significant driver.”

One development-focused sovereign reportedly told the authors: “Historically, we have been a very low-profile shareholder. However, the regulatory environment has prompted us to take a position, and ESG is becoming a very big deal. If you don’t provide a good story to tell the public, the public creates its own narrative, and this narrative is often wrong.”