ShareAction Claims Irresponsible Investment by Asset Managers
2023.02.26 09:28
ShareAction Claims Irresponsible Investment by Asset Managers
By Kristina Sobol
Budrigannews.com – Despite efforts by the industry to promote its sustainable finance credentials, global asset managers with control of trillions of dollars are failing to invest in a manner that will protect climate, biodiversity, and people, according to ShareAction on Sunday.
Globally, trillions of dollars have been raised through investment strategies that take into account environmental, social, and governance (ESG) risks or invest in businesses that seek to positively impact climate, people, and the natural world.
Based on an analysis of their policies, the group discovered that two-thirds of the 77 asset managers surveyed, who control $60 trillion in assets, had “serious gaps in their responsible investment policies and practices.”
These include not taking into account Scope 3 emissions, which are linked to a company’s value chain, in climate targets or failing to assess and prevent negative impacts on nature.
“As managers of tens of trillions of dollars, their choices have a significant global impact.” However, Claudia Gray, ShareAction’s head of financial sector research, stated, “There remains a lack of ambition to drive real-world improvements.”
ShareAction evaluated managers based on more than a hundred indicators, including their investments in fossil fuels; how they incorporate biodiversity policies into decision-making and whether they have established shorter-term emission reduction targets.
According to the group, J.P. Morgan Asset Management was one of the biggest improvers. It moved up almost 60 places to 13th place after engaging in discussions about human capital management and social and biodiversity policies.
Additionally, ShareAction found that the percentage of managers performing significantly below peers has decreased from 51% in 2020 to 35% in 2023.
