A new report from investor group ShareAction has argued that the world’s leading asset managers are lacking ambition on net-zero, deforestation, and many key climate and biodiversity issues.
The report surveyed 77 of the world’s largest asset managers which collectively hold over $77 trillion in assets under management. Thirteen of those questioned were based in the Asia Pacific region, 39 were from Europe, and 25 were located in the Americas.
One of the 20 key findings found that “asset managers are out of sync with the world’s leading scientists and the United Nations (UN) when it comes to emissions and net-zero.” This was attributed to inadequate targets to reduce emissions and continued investment in companies that are expanding their oil and gas production.
It was also found that only a quarter of the firms surveyed have commitments on deforestation, and none have commitments to avoid other forms of damage to natural habitats, such as wetland draining for agricultural use or ocean pollution.
The ShareAction report also concluded that managers are “stalling” the move to green and clean energy by not investing in enough new low-carbon energy opportunities.
“It is alarming to see too many asset managers are failing to adapt their investments to tackle climate change and the destruction of our valuable and vital biodiversity,” said ShareAction’s head of financial sector standards, Claudia Gray.
“Asset managers need to use the huge power they wield through the investments they hold to bring about a meaningful transition to a clean and sustainable future,” Gray added.