ICLG – Environmental, Social & Governance Law 2026

The role of sustainability in the operations and investment management activities of asset managers has long been a subject of discussion and, in some jurisdictions, controversy. In recent years, however, the conversation among some investors has become more urgent and focused, driven by concerns aboutthe impact of climate change.

At the same time, the conversations relating to sustainability and ESG have become much more political and nuanced, particularly in the US.

These conversations and controversies, which reflect differing attitudes on sustainability and its role in asset management, willlikely continue for the foreseeable future. For global asset managers, it is increasingly difficult to navigate the differing regulatory approaches to, and investor views on, sustainability in the jurisdictions in which they seek to offer and manage investment products. These challenges will likely continue.