Many asset managers improved their responsible investment policies and disclosure of related stewardship activities last year but there are key gaps in performance, with the majority lacking biodiversity voting and engagement policies, according to a new report from ShareAction.
The report noted that over two thirds or 82% of asset managers reported voting policies on climate and 81% on social issues.
The 2022 survey was the first that asked whether asset managers referenced biodiversity in their voting policies and only one third, 38%, reported having a biodiversity policy.
ShareAction, an NGO working globally to define the highest standards for responsible investment, reviewed the responsible investment governance and stewardship practices of 77 of the largest asset managers, who hold over $77 trillion in assets under management in aggregate.
The analysis is based on data collected between July and November 2022 and results were compared to the previous survey in 2020.
The report said European asset managers performed highest in general, with all of the top ten performers in stewardship based in the EU or the UK, although one of the bottom ten was also based in the EU.
There has also been some progress in governance, including a general trend towards board members being responsible for responsible investment policies, but asset managers are still falling behind on other aspects, such as linking remuneration for senior management to responsible investment.
“Overall, the asset managers we surveyed appear to have taken several initial, important steps to improve their responsible investment stewardship and governance,” said Share Action. “This is heartening, but they must go further.”
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