Asset Managers “paying lip service” to ESG

From SquareWell’s Top 50 study, CityAM reports that there is a significant discrepancy in the pledges made by asset managers compared to the action taken. 02 October 2019 Asset Managers “paying lip service” to ESG

Edouard Dubois, Partner at SquareWell Partners, highlights in CityAM the element of “green-washing” that has taken place since the PRI was launched in 2006. However, in recent years, investors have become concerned about ESG matters with asset owners pushing them to act.

Research published last month found that some funds marketed as climate conscious, including some explicitly described as “fossil fuel reserves free” in fact had exposure to to fossil fuels.

Dubois states that “while there is a very positive momentum on both the investor and corporate sides”, a “common language” is needed to be developed between the two on ESG issues. “We haven’t found a lingua franca yet”.

SquareWell’s report also found that asset managers are becoming more vocal. Over a quarter (26 percent) of managers covered in the research had publicly expressed their discontent with a portfolio company since the start of last year.

You can find the article here.


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