As ESG momentum continues to grow, so does the complex
regulatory landscape for asset managers. The combination of
mandatory climate-related disclosures and an EU-wide SFDR
"disclosure exercise" is inevitably moving the market
forward, while the "E" in ESG continues to hold its
strong position. As the market starts to build ESG capacity and
becomes more fluent in the transparency rules, the ESG integration
in asset management is only going to deepen in the years to come,
as Kasia Zatorska, from Ogier's Sustainable Investment
Consulting, explains.
"E" at the forefront of regulation in 2022
Investors and regulators have shown increasing interest in ESG
over the past few years. In 2021 alone at least 34 regulatory
bodies and standard setters in 12 markets undertook official
consultations on ESG1. Many jurisdictions, including the
UK, the EU, Singapore and Hong Kong have announced regulation that
requires asset managers to consider climate-related risks in