... The uptake of ESG issues by known hedge fund activists comes as more institutional investors incorporate environmental, social, and governance factors into their investment processes. A Callan survey of 89 U.S. institutional investors found that 42 percent had included ESG in their investment decision-making processes — almost double the proportion of investors who reported using ESG factors in 2013.
Cerulli, meanwhile, found that asset managers are anticipating high demand for ESG strategies from institutional clients over the next two to three years, with 98 percent expecting moderate-to-high ESG demand from endowments and foundations. Around four out of five asset managers expected similar levels of demand from public pension funds and hospital systems.
To translate this into a language spoken beyond the confines of Wall Street, here's a breakdown:
1. Trian invests other people’s money to make more money, for both those other people and for themselves. That’s pretty much what Trian does.
2. Those other people that give Trian their money to invest are increasingly interested in how the companies where Trian invests their money treat people — including workers in their supply chains — and the planet.
3. Trian is responding to that increased interest by its current and prospective clients by positioning itself among a subset of hedge funds known to be focused on “ESG” issues.
