A Sustainability Integration Framework for Institutional Investors

Abstract
The Sustainability Integration Framework for Institutional Investors (hereafter “the framework”) draws on best practices from asset owners and managers to assist institutional investors interested in crafting their own approach to sustainability integration. While it is mainly directed at SWFs and PPFs, many of the strategies and methodologies are applicable to a wider audience of asset owners and managers. The framework intends to offer a structured approach for thinking about sustainability and is supplemented by case studies and examples that illustrate best practices. Recognizing that institutional investors have different risk exposures and tolerances often stipulated by fiduciary rules, that they have different financial and human resource capabilities, and are bound by diverse regulatory environments, the framework offers valuable inputs for institutional investors across the maturity spectrum.