How the 50 largest asset managers approach ESG and corporate governance and the pressure on them to do more is the subject of a forthcoming report by SquareWell Partners in London.
Demands on asset managers to consider ESG issues and be more transparent "has created a chain of scrutiny, with ultimate accountability falling on the shoulders of asset managers," the report said.
The annual study covers 50 of the largest asset managers with a combined $60 trillion, and found that 20 of them use at least four ESG research and ratings providers, and 30 have developed their own internal ESG ratings.
More than half, 27, support the Sustainability Accounting Standards Board reporting framework.
On climate change, most of the 50 support the Task Force on Climate-related Financial Disclosures reporting framework, and 36 are members of Climate Action 100 Plus. Only nine of the managers are part of the Net Zero Asset Managers Initiative that supports the goal of net-zero greenhouse gas emissions by 2050 and calls for companies to disclose clear plans for transitioning to a low-carbon economy.
While 47 of the asset managers publish their voting policies; only 32 of those policies incorporate environmental and social topics, SquareWell found.