As global asset managers and fiduciaries to clients, these entities wield tremendous power over the global economy and society. With tens of trillions of dollars under management and investments in major corporations across industries, the decisions they make can have a significant impact on the environment, climate change, biodiversity, and human well-being.

Unfortunately, two-thirds of companies with $60 trillion in assets under management have severe gaps in responsible investment policy and practice in at least one area. This is a concerning trend, given the urgent need to address climate change, protect ecosystems, and promote social well-being.

In particular, asset managers in North America and Asia Pacific have been found to lag behind their European counterparts on ESG issues. This is worrying, as these regions are home to some of the world's largest asset managers and investors.

However, some asset managers have taken steps to improve their ESG policies and practices. For instance, SEB Asset Management has made notable strides in improving its climate and biodiversity goals, while ShareAction has pointed to the adoption of stronger climate goals by certain asset managers such as Santander Asset Management and JP Morgan Asset Management.

It is worth noting that while a significant number of asset managers are long-term financiers of energy production, there are positive developments in this area. Nevertheless, much more needs to be done to ensure that asset managers take their impact on the environment, society, and the global economy seriously. Ultimately, the governance and management of asset managers will play a crucial role in shaping our collective future, and they must prioritize responsible investment policies and practices.

#investment #biodiversity #economy #future #assetmanagement
#100daysoflearning Day 021

Originally published on My LinkedIn on March 4, 2023.