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Callan Publishes 2025 Asset Manager Sustainable Investment Practices Study

Overview of the Study

Callan, a prominent institutional investment consulting firm, recently unveiled its 2025 Asset Manager Sustainable Investment Practices Study. This comprehensive study examines how asset managers incorporate environmental, social, and governance (ESG) factors into their investment processes. With insights gathered from over 1,500 organizations, it reveals the evolving landscape of sustainable investment practices since the firm's first study in 2023. The findings offer a snapshot of the current state of ESG integration among asset managers, highlighting trends, changes, and areas of concern.

Key Findings

Among the most noteworthy findings from the study:

• - 76% of asset managers now integrate ESG research across their investment platforms, a slight decrease from 77% in 2023.
• - 71% possess a firmwide ESG policy, down from 74% in the previous study.
• - 39% publish a quarterly or annual sustainability or ESG report, maintaining the same percentage as in 2023.
• - There’s a decline in the number of firms employing full-time dedicated ESG professionals, dropping to 35% from 41% in 2023.
• - 64% now purchase access to third-party ESG data, a reduction from 69% previously.
• - 56% engage directly with portfolio company management regarding ESG issues, slightly down from 57% in the earlier report.
• - Among the asset classes, 46% of organizations identified equity as their primary focus, while fixed income and real estate accounted for 13% each, and private equity represented 6%.

Analysis of Changes Over Time

The study's authors note significant shifts in the priorities of asset managers since 2023. Tom Shingler, senior vice president and leader of Callan's ESG practice, emphasized that while some firms have reduced their focus on sustainability integration, others have amplified their commitment and the resources allocated to ESG initiatives. This change underlines the dynamic and often unpredictable nature of the investment landscape, especially as societal and regulatory pressures around sustainability continue to increase.

Methodology of the Study

The methodology employed by Callan for this study involved their proprietary investment manager database, which includes extensive information on over 3,900 organizations and more than 22,000 products. A key aspect of the study was the collection of ESG-related insights from over 1,600 organizations regarding their investment strategies and practices. The responses were categorized based on firm size, asset class, domicile country, and ownership structure, providing a granular understanding of the current ESG landscape as of March 31, 2025.

Demographics of Respondents

The composition of the respondent base mirrors the trends within the broader institutional investment industry. The majority of participants (66%) manage under $10 billion in assets, while 18% report between $10 billion and $50 billion. The remaining 15% control over $50 billion in assets. Notably, a significant portion of the survey, approximately 83%, originates from firms headquartered in the United States, with the U.K. and Canada accounting for 7% and 3%, respectively.

Conclusion

The findings from Callan's 2025 Asset Manager Sustainable Investment Practices Study provide an essential lens into how asset managers are navigating the complexities of sustainable investment within a rapidly changing regulatory and societal context. As the importance of ESG considerations grows, understanding these trends will be vital for both institutional investors and the firms they engage with. For further insights, interested parties can explore the detailed blog post and data summary available online at Callan's website.

About Callan

Founded in 1973, Callan is an employee-owned investment consulting firm dedicated to empowering institutional clients through tailored investment solutions. With more than $4 trillion in total assets under advisement, Callan is among the largest independent investment consulting firms in the United States. Their approach combines proprietary research, exclusive data, and ongoing education to serve a diverse client base, including pension plans, endowments, foundations, and investment managers. To learn more, visit Callan's website.