SquareWell's recent study* of the 50 largest asset managers' practices and approaches to ESG, stewardship, and activism, revealed these and other noteworthy findings:
- Sustainable investing: Nearly all of the asset managers are signatories to the UN PRI; 86% support the TCFD; 72% have joined the Climate Action 100+; 54% are members of SASB; and 28% are signatories to the Workforce Disclosure Initiative.
- ESG ratings: 76% of the asset managers use two or more third-party ESG research/rating firms - most commonly, MSCI, Sustainalytics, and ISS-ESG, and 60% have developed their own proprietary rating systems.
- Proxy advisors: All but two of the asset managers disclose the use at least one proxy advisor – predominantly ISS. The degree of reliance on proxy advisors varies, with 46% disclosing reliance levels of medium to high, and half disclosing a low level of reliance.
* Request the complimentary report: "2021: The Playing Field - A Look at the World’s Largest 50 Asset Managers" through the firm's website here. The investors that participated in the study are listed in the report’s Appendix.
See “More than half of top 50 asset managers developing internal ESG ratings” (IR Magazine). This post first appeared in the weekly Society Alert!