Delays And Data Pose Dual ESG Challenges For Funds

The demand for investments with strong ESG credentials is ever increasing, with global ESG assets under management (AUM) on track to exceed $53 trillion by 2025. This would represent more than a third of all worldwide investable AUM, according to research from Bloomberg Intelligence.

This trend is driven by a genuine desire to move towards more ethical and responsible investment and investor demand. Asset managers are under increasing pressure to integrate ESG considerations into their investment approaches, but this is not without its challenges.

The two main ESG challenges for funds are, first, the series of delays to the implementation dates of regulations and, second, a lack of transparency and reporting standards for ESG data. This article examines these two challenges with a particular focus on Europe.