ESG’s Real Problem Is a Lack of Data, Fixed-Income Pros Say

As the debate heats up over ESG investing, fixed-income professionals say they need more data than what’s currently out there.

A survey of 111 senior buy-side fixed-income investors, conducted by analytics firm Coalition Greenwich, found that 90% believe the popular strategy, which prices in environmental, social and governance risks, is important to decision making. Yet only about a third of investors have fully integrated ESG into their risk-analysis. The reason? Not enough data.

“It boils down to risk-management,” said Coalition Greenwich’s senior analyst Stephen Bruel. “If you don’t have reliable ESG data about an issuer or issuance, then it’s harder ...