Three-quarters (76 per cent) of institutional investors say they integrate environmental, social and governance across their investment platform, according to a new survey by Callan.
The survey, which polled 1,500 institutional investors, found there has been a decline in the use of a firmwide ESG policy from 74 per cent in 2023 to 71 per cent in 2025.
Only 35 per cent of firms reported employing full-time ESG staff, compared to 41 per cent in 2024 and just two in five (39 per cent) respondents said they publish a quarterly or annual report detailing their sustainability or ESG progress.
The survey found also declines in the purchase of third-party ESG data, down from 69 per cent in 2023 to 64 per cent. Direct contact with portfolio managers about ESG issues also decreased among institutional investors, from 57 per cent to 56 per cent.
“We have seen marked changes since our first study in 2023, as some firms have reduced their focus on sustainability integration, while others have expanded their efforts and increased the resources devoted to this area,” said Tom Shingler, senior vice president and ESG practice leader at Callan, in a press release.