A Sustainable Investment in Journalism

A sustainable business requires diverse revenue streams. ESG Investor now operates a subscription service as of Tuesday 14th May. To find out more please get in touch with our subscription team on subscriptions@esginvestor.net

Gap Between Rhetoric and Reality in AMs’ Climate Strategies

Asset managers have to bridge climate action gaps to effect real change, according to a Redington survey of 122 asset managers with a total of £37.7 trillion AUM. The investment consultancy’s research focused on three key areas – integration, engagement and emissions targets – where asset managers “must act” to address gaps between their climate action strategies and practical responses. On integration, 87% of managers report integrating climate into their investment processes, a seven-percentage point increase from 2021. However, at a strategy level, only 63% actually perform climate risk assessments and only 67% monitor emissions-based metrics. For engagement, over ninein ten of the surveyed strategies claim to prioritise climate change in their engagement efforts, but only 54% track and report engagement activities. On emissions targets, 59% of managers have a firm level net-zero target, but similar targets cover only 34% of their strategies. Anastasia Guha, Redington’s Head of Sustainable Investment, said: “Translating rhetoric into reality is a challenge that continues to weigh on the asset management industry, and it is clear that the pace of decisive action is significantly lagging. Asset managers cannot afford to hide shortfalls in practice under noble principles – nor should they be comfortable letting firm-level progress mask a lack of action in individual strategies.” 

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2024 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top