Japanese investors ’ focus on environmental , social and governance ( ESG ) factors could be under threat if not supported by sufficient resources . Asset managers are developing services around ESG , however they claim that not enough asset owners are investing in the area . Speaking at the fifth Japan Institutional Investment Forum last week , former portfolio manager Charles Yang said that ESG analysts would be incentivised to focus on the long term . This would require a change in mindset , as it has operated on a quarterly earnings framework since 2008 . mark foster , director of investment practice and reporting for the UN ’s institute for Responsible Investment division , said ESG screening was well - established in the areas of infrastructure , real estate and private equity . However , the next major challenge was to integrate ESG screening into hedge fund investment .
Japanese investors’ focus on environmental, social and governance (ESG) factors could be under threat if not supported by sufficient resources. Asset managers are developing services around ESG, however they claim that not enough asset owners are investing in the area. Speaking at the fifth Japan Institutional Investment Forum last week, former CFA chairman Charles Yang said that ESG analysts should be incentivised to focus on the long term. This would require a change in mindset, as Japan has operated on a quarterly earnings framework since 2008. Kris Douma, director of investment practice and reporting for the UN’s Principles for Responsible Investment division, said ESG screening was well-established in the fields of infrastructure, real estate and private equity. However, the next major challenge was to integrate ESG screening into hedge fund investment.