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LONDON (Reuters) – A multitrillion-dollar global asset manager says it will continue to do so in ways that protect climate, biodiversity and people, despite industry efforts to promote sustainable financial credit. It’s failing to invest, corporate responsibility group ShareAction said on Sunday.
Investment strategies that consider environmental, social and governance (ESG) risks, or investments in companies that are believed to have a positive impact on climate, people and the natural world, have raised trillions of dollars worldwide.
But two-thirds of the 77 asset managers surveyed, managing $60 trillion in assets, had “serious gaps in responsible investment policies and practices,” the group said in a policy analysis. It was discovered based on
These include failing to assess and prevent negative impacts on nature and including Scope 3 emissions related to a company’s value chain in its climate goals.
“As managers of tens of trillions of dollars…their decisions have significant impact around the world….[but]the ambition to drive real-world improvements is still lacking,” said the finance chief. said Claudia Gray of the Sector Survey at ShareAction.
ShareAction evaluated executives on hundreds of metrics, including investments in fossil fuels. Whether it sets short-term emissions reduction targets and how it integrates biodiversity policy into decision-making.
The biggest improvement was JP Morgan Asset Management, which climbed nearly 60 spots to 13th after adopting social and biodiversity policies and addressing topics such as human capital management. the group said.
ShareAction also found that the proportion of managers who perform significantly worse than their peers has decreased from 51% in 2020 to 35% in 2023.