Third of firms not engaging on climate change, report finds

More than a third of asset managers are not engaging with the issue of climate change, a report has claimed.

Research conducted by the UK-based investment consultancy Redington found that more than a third (39%) of asset managers were, when asked, unable to provide an example of a climate change related engagement effort.

The research also found that less than two thirds (62%) of asset management firms have an ESG engagement policy in place.

In addition, despite three quarters (76%) of managers surveyed saying they consider climate related risks and opportunities only 60% could provide an example of when climate change factors have actually influenced their buying or selling decisions.

Nick Samuels, head of manager research at Redington, said the discrepancy highlights the fact that, despite engagement seemingly increasing, this is not yet translating into concrete and consistent portfolio decisions.

Samuels said: “Climate change is a widespread and global problem, impacting all sectors of the economy in one way or another.

“We would expect all our managers, regardless of asset class, to have at least one, if not several, examples of climate change related engagements with their portfolio companies.”

The firm interviewed a total of 104 managers from across the world, representing over $10 trillion in combined assets under management.

 

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