The variety of fund managers dedicated to web zero by 2050 has doubled to 81% over the previous yr however solely two in ten (22%) have concrete carbon discount plans, based on a brand new report.
Final yr 41% of asset managers surveyed by XPS Pensions Group had dedicated to web zero.
Fund managers’ progress on integrating ESG into their funding strategy had been offset with stagnation in different areas, with simply 24% of managers scoring Inexperienced ESG rankings on XPS’s “site visitors gentle” score system compared to 23% in 2021.
A 3rd (31%) of fund managers couldn’t present any examples of how they built-in ESG into their funds.
Various asset lessons (together with safe earnings, actual property and personal markets) lagged behind, notably when it comes to stewardship and engagement.
Alex Quant, head of ESG analysis at XPS Pensions Group, stated: “Regardless of the emergence of anti-ESG sentiment within the final yr, it stays our view that integrating consideration of ESG elements into funding choices is a crucial a part of sustainable, long-term funding apply.
“We recognize that numerous effort is being spent on this space throughout the funding administration business, nevertheless, it’s clear that there stay areas for enchancment notably round contemplating local weather change and reporting again to stakeholders on ESG outcomes.”
XPS analysed knowledge from 63 asset managers overlaying 255 funds for its ‘Funding Fund ESG Score Overview 2022’ report.
The funds have been assessed in opposition to eight key points: product, dad or mum, individuals, course of, pricing, positioning, efficiency and ESG. Inside the ESG factor funds have been assessed on philosophy, integration, local weather change, stewardship, and reporting.
The Monetary Conduct Authority final month introduced that it’s to determine a brand new advisory committee to work on ESG points, saying that it needs monetary advisers to take sustainability under consideration when giving funding recommendation.