Survey: Only a fifth of asset managers have a robust net zero plan

A growing number of asset managers have pledged to achieve net zero emissions in their investment portfolios by 2050, but only around a fifth have set out credible plans for how to achieve it, a survey shows.

The survey, conducted by XPS Pensions Group, explored the views of 63 asset managers to understand their current approach to incorporating ESG (environmental, social and governance) and climate change risk into their business decisions.

The Investment Fund ESG Rating Review 2022 The survey showed a significant increase in the number of fund management groups pledging to go net by 2050, with 81 per cent now having such a commitment, up from just 41 per cent the previous year.

However, the survey results, released yesterday, also show that only 22 percent of respondents have set out solid plans to back up their commitments.

Progress in integrating ESG into investment approaches was also halted, with 24 percent receiving the highest “green” ESG rating from Sviatlafor’s proprietary XPS scoring system – up from 23 percent in the previous year’s survey.

Meanwhile, 31 percent of asset managers could not provide examples of how ESG has been integrated into their funds, raising concerns about whether ESG practices are actually being applied.

Alternative asset classes continue to lag, particularly in terms of governance and interoperability, while coverage of climate data is limited. It also raises questions about whether these funds are paying enough attention to ESG and climate change, the pensions consultancy said.

“Despite the emergence of anti-ESG sentiment in the past year, we still believe that integrating ESG considerations into investment decisions is a critical part of a sustainable, long-term investment practice,” said Alex Quant, Head of ESG Research in XPS Pension Group.

“We are grateful that there is a lot of effort in this area across the investment management industry, but it is clear that there remain areas for improvement, particularly in relation to climate change and stakeholder reporting on ESG performance.”

https://www.businessgreen.com/news/4056689/survey-fifth-asset-managers-credible-net-zero-plan Survey: Only a fifth of asset managers have a robust net zero plan

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