Seventy per cent of investment managers don’t disclose how they deal with conflicts of interest in their responsible investment and close to 50% don’t report on having asset class-specific ESG guidelines, new research from the PRI has found. The report, Inside PRI Data: Investment Manager Practices, analysed data submitted by 1,858 PRI signatories during the organisation’s most recent reporting window in 2021. It found 85% of investment managers made their overarching approach to responsible investment publicly available and disclose important information about how this approach is implemented and overseen. But 14% did not make their policies on responsible investment public at all. The research also found that while 70% of investment managers have a stewardship policy, in some cases it was only applicable to a small percentage of AuM or provided limited details on specific issues. For example, less than half outlined their climate-related stewardship approach. Further work was also needed on robustly implementing the TCFD recommendations, the research found – with over 60% not conducting scenario analysis. Among those that do conduct such analysis, most consider a single scenario. “The data from our reporting process highlights areas for further work in raising the standards of leading practice among investment managers,” said Toby Belsom, Director of Investment Practices at the PRI.
How can investment managers improve their practices on key responsible investment issues?
Our new research has found that although there are positive advancements for implementing responsible investment practices, there is still progress to be made.
— The PRI (@PRI_News) March 17, 2023