Institutional Asset Manager 30/07/21

institutional asset manager maddy taylor captioned.jpgTomorrow will mark three months until the start of the UN Climate Change Conference, which could be a pivotal moment in the global fight against climate change.

The impact of climate change has rarely been more visible than over the past month, with extreme weather events spanning the globe, from flash floods in China and India, to wildfires raging across the US, Turkey, and Siberia.

Asset managers including Vontobel Asset Management, Russell Investments, RBC GAM, BlueBay Asset Management, Insight Investments, have outlined what they expect from the conference, including targets for lowering national carbon emissions, the mobilisation of private finance, and the climate funding gap to emerging markets.

“It is not a question of whether or not expectations will be met – quite simply we cannot afford for them not to be,” said Willis Towers Watson’s head of sustainable investing.

Meanwhile, major asset managers are getting serious about the climate impact of their investments. Fidelity International, which manages USD787 billion in assets, has said it will vote against company boards that fail to meet its expectations for tackling climate change from 2022 onwards.

“Our message to investee companies is clear; the climate crisis must not and cannot be ignored,” says Jenn-Hui Tan, Fidelity’s global head of stewardship and sustainable investing.

Engagement and stewardship are becoming ever-more-powerful tools for asset managers, who now hold a record amount of invested capital. Assets held in UCITS and AIFs surpassed EUR20 trillion for the first time ever in May, according to the latest data from European Fund and Asset Management Association (EFAMA).

The record amount of money invested Europe’s fund management industry has been explained by a positive market environment, with strong sales of equity and multi-asset funds.

Madeleine Taylor
Editor, Institutional Asset Manager


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