AUM in Action

Trustees Pressed on Climate Data Progress

Private markets climate data remained patchy last year, leaving defined benefit (DB) and defined contribution (DC) asset owners at risk of seeing their own climate reports failing to meet regulatory standards, research from Hymans Robertson has shown. The pensions and financial services consultancy said trustees must hold private market managers to account for lack of climate data reporting progress, adding the lack of data made DB and DC owners more vulnerable to potentially damaging gaps in their decision-making process. The report outlined five recommendations for ways in which asset owners could support investors in the getting information required for decision-making, reporting and governance requirements. These included consistently asking for data, engaging with managers, understanding data verification processes, being pragmatic, and encouraging transparency. In addition, the annual research assessed the extent to which private market asset managers have been able to report on climate metrics across four asset classes: private debt, private equity, real estate and infrastructure. In 2023, asset managers reported on assets totalling £93.9 billion (US$119 billion) – a significant increase from £63.9 billion the previous year. “Reporting on climate data remains at a relatively early stage across most private market asset classes,” said Simon Jones, Head of Responsible Investment at Hymans Robertson. “However, for asset owners who have set climate goals, there is a need to understand the progress that is being made. Better data helps not just the reporting needs of asset owners, but also informs their strategic decisionmaking.”

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