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Laxman Pai, Opalesque Asia: The gap between asset manager's commitment to climate change issues and their actual follow is significant, said a study adding that there is "room for improvement".
"Despite the asset management industry's clear commitment to climate-related issues, practical and concrete responses continue to lag initial policy statements. The latest research reveals the scale of the challenge and the areas where the most improvement is required," explained the study by the investment consultant Redington.
As part of its annual Sustainable Investment (SI) Survey, the firm engaged with 122 asset managers across a range of geographies, covering 232 strategies and an aggregated £37.7trillion in combined assets under management.
On climate change, in particular, the research revealed three key areas where managers must act to bridge the gap between rhetoric and reality:
Integration: 87% of managers report integrating climate into their investment processes (up from 80% in 2021). But at a strategy level, far fewer (63%) perform climate risk assessments, and only 67% monitor emissions-based metrics. That's a 24% and 20% shortfall, respectively.
Engagement: 92% of the surveyed strategies state that they prioritize climate change in their engagement efforts - but only 54% track and report engagement activities. This is a 38% shortfall.
Emissions targets: 59% of managers have a firm-level net-zero target, but similar targets cover only 34% o...................... To view our full article Click here
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