ShareAction Claims Asset Managers Lagging On Climate And Biodiversity

In a recent report, the UK-based NGO ShareAction claimed that "[t]he asset management industry needs to change urgently if it is to demonstrate proactive stewardship that safeguards against key social and environmental risks in the best interests of the investors." The group's Point of No Returns report ranked 77 of the largest asset managers globally based on their responses to 107 questions across five "responsible investment themes," namely, stewardship, governance, climate, biodiversity, and social issues. Average performance across asset managers was best in the areas of stewardship, governance, and social issues. The report recognized improvement in the industry with respect to climate policies, but noted that "there is still room for improvement," particularly regarding the adoption of net-zero targets and "time-bound," action-based climate transition plans.