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Article | Executive Pay Matters

World’s largest asset managers focus on sustainability and organizational culture 

Executive Compensation
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By Andy (Andrew) Goldstein , Ryan Resch and Ruby Tewani | November 12, 2019

Institutional investors are placing increasing value on companies demonstrating sustainability, a connection of culture to strategy and an underlying purpose that links values, vision and mission.

Environmental, social and governance (ESG) issues are a growing area of focus for investors. In 2018, the 500 largest global asset managers reported a 23% increase in funds with ESG mandates, according to the Thinking Ahead Institute.* The research finds that institutional investors are placing increasing value on companies demonstrating:

  • Sustainability
  • A connection of culture to strategy
  • An underlying purpose that links values, vision and mission

Additional research from our Executive Compensation practice on recent shareholder proposals shows continued focus on Human capital management topics such as workforce diversity and pay parity. Organizations competing for capital from the largest investors in the world should take note of this trend in formulating their ESG strategy and communications.

Read on for additional insight from the Thinking Ahead Institute.

*The Thinking Ahead Institute is a global not-for-profit investment research and innovation member group, and is an outgrowth of Willis Towers Watson Investments’ Thinking Ahead Group.

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