Most Important KPIs for US Asset Managers

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.