Eighty per cent of European pension funds believe that asset managers are taking a holistic approach to environmental, social and governance issues, according to a survey by Deepki.

The research by Deepki takes an in-depth look at trends in commercial real estate asset allocation, the value of ESG, and the measures being taken to improve ESG performance. The report surveyed 250 European pension fund managers in the UK, Germany, France, Spain and Italy.

In addition, the research also revealed that 62 per cent predict that social factors such as the rehabilitation of public spaces, affordable and social housing, diversity and workplace safety will drive the greatest value in the next three years.

One quarter (24 per cent) expect environmental factors such as energy efficiency, water use and materials to drive the greatest value, while 12 per cent expect governance factors such as compliance with regulations, remuneration and action against corruption to have the most considerable effect.

When asked about their fund’s focus on ESG factors, 28 per cent and 29 per cent described their environmental performance as good or very good respectively, whereas 18 per cent described it as poor. In contrast, 43 per cent described the focus on social factors as very good and 21 per cent as good. Only 12 per cent described it as poor. Governance factors also scored highly, with 37 per cent of respondents describing their fund’s focus as good and 26 per cent as very good.

“The findings illustrate the complexities of measuring ESG performance, in particular carbon footprint and other environmental factors. The Covid-19 pandemic has also brought social factors into sharp relief, as businesses have worked hard to ensure work and living spaces provide healthy, safe and secure environments for occupants,” Deepki CEO and co-founder, Vincent Bryant, said.

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