Sustainability Integration by Public Pension and Sovereign Wealth Funds, 2022
Abstract
This study examines ESG and sustainability integration in the investment practices of the world’s 100 largest public pension funds (PPFs) and sovereign wealth funds (SWFs), accounting for $22 trillion in assets under management (AUM). PPFs and SWFs have long-term obligations and investment horizons. This puts them in a unique position to contribute to the Sustainable Development Goals (SDGs) and take action on sustainability risks, especially climate change. By reviewing the sustainability reporting of 47 ‘frontrunner’ funds, this study identifies a rich pool of good practices for sustainability integration in six strategic areas: governance, corporate sustainable investment policies, sustainability integration strategies, ESG integration along the investment chain, climate action, and evaluation and reporting. The findings of the report and best practice cases will also contribute to UNCTAD guidance on sustainability integration for institutional investors, with a particular relevance for developing countries.
