THE ROAD AHEAD

Five years of data, but so what?

Huge thanks for taking the time to read our 2024 Sustainable Investment Survey. For the last five years, we’ve been taking pulse of how asset managers are approaching a broad range of issues – from ESG integration & stewardship and climate, right through to DEI and impact investing.

Sustainability issues remain front and centre for our clients, so the fact we are seeing progress reversing for the first time across all of these key areas is deeply concerning.

But of course, the data only tells us one part of the story. It’s how these findings are communicated, engaged with and acted upon that dictates future outcomes.

So, what should the industry be looking to take forward in light of this year’s data?

AS AN ASSET OWNER, CONSIDER

How best you can hold managers to account on the issues that matter for your end-beneficiaries. Importantly, ask for concrete evidence on the outcomes and impacts of decision-making.
This is a changing space and varies depending on asset managers, as well as asset classes and approach. Be curious and allow for nuance.
Keep asking questions about themes you and your end-beneficiaries care about. Remember, this is engagement in itself!
Explore impact solutions where sensible.

AS AN ASSET MANAGER, CONSIDER

How you are measuring and reporting on key metrics – e.g. carbon, DEI. Is your firm able to robustly evidence management and track progress?
Showing us your missteps. In every walk of life, there’s a lot to be gained from reflecting on what’s been learned and how things should be done differently in the future. Sustainability is no different - we’re all learning!
Show us how you are considering systemic risks.

As ever, we implore you to engage with the issues raised in this latest report and get in touch with your thoughts and views.

As mentioned earlier, we’ll be looking to bring together asset owners, consultants and other key stakeholders via a series of discussions to help carve out a path for future improvement. We hope you will join with us in driving the collective action that will change our industry for the better.