Most Important KPIs for US Asset Managers

Governance
:   
ESG Strategy & Integration
August 5, 2025

1. Portfolio Carbon Footprint/Carbon Intensity

  • Total GHG emissions (Scope 1, 2, 3) of portfolio companies
  • Weighted average carbon intensity (WACI)
  • Critical for climate risk assessment and regulatory compliance

2. ESG Integration in Investment Process

  • Percentage of AUM with ESG integration
  • ESG factor consideration in investment decisions
  • Demonstrates commitment to sustainable investing practices

3. Proxy Voting Record on ESG Issues

  • Voting patterns on climate, governance, and social proposals
  • Alignment with stated ESG policies
  • Increasingly scrutinized by institutional investors

4. Portfolio ESG Risk/Quality Scores

  • Third-party ESG ratings (MSCI, Sustainalytics, etc.)
  • ESG controversy exposure
  • Risk-adjusted performance metrics

5. Sustainable Investment Product Offerings

  • AUM in ESG/sustainable funds as % of total AUM
  • Number of Article 8/9 equivalent strategies
  • Product development pipeline

6. Climate Scenario Analysis/Stress Testing

  • Portfolio resilience under climate scenarios
  • Physical and transition risk assessments
  • TCFD-aligned reporting metrics

7. Diversity & Inclusion Metrics

  • Board and executive diversity of portfolio companies
  • Internal diversity statistics
  • Supplier diversity programs

8. Stewardship and Engagement Activities

  • Number of companies engaged on ESG issues
  • Engagement outcomes and progress tracking
  • Collaborative initiatives participation

9. Water and Waste Management

  • Portfolio companies' water usage and waste generation
  • Circular economy exposure
  • Resource efficiency metrics

10. Social Impact Indicators

  • Human rights due diligence
  • Community investment
  • Labor practices and safety records

The ranking reflects current regulatory focus (SEC climate rules), investor demand, and materiality to long-term value creation.

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