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.” 

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