A ShareAction report uncovers how the world’s 77 largest asset managers lack ambition on net-zero, deforestation and many key climate and biodiversity issues.

Among the key findings in the report and based on the asset managers own responses ShareAction found that asset managers have inadequate targets to reduce emissions and are continuing to invest in companies that are expanding their oil and gas production.

Furthermore, only a quarter of managers have commitments on deforestation, and none have commitments to avoid other forms of damage to natural habitats, such as wetland draining for agricultural use or ocean pollution.

ShareAction’s Claudia Gray, head of financial sector standards, said: “It is alarming to see too many asset managers are failing to adapt their investments to tackle climate change and the destruction of our valuable and vital biodiversity. Asset managers need to use the huge power they wield through the investments they hold to bring about a meaningful transition to a clean and sustainable future.”

In addition to key findings about insufficient net-zero strategies and habitat destruction, asset managers are blaming bad data in a way that doesn’t stand up to scrutiny. Managers are deploying manpower and resources to collect the data but are simply not using it: For example, most managers perform climate scenario analysis, yet less than a third reported that they use these results to inform their approach to investment.

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