An analysis by InfluenceMap‘s FinanceMap team shows that major asset management firms have made little progress in their climate strategies and impacts over the past two years. Some US companies have even reversed their positive efforts due to anti-ESG sentiment.
While maintaining climate commitments, most firms aren’t effectively using their influence for change. Only Schroders and Natixis Investment Managers manage portfolios in line with the Paris Agreement, while companies like Goldman Sachs and BlackRock are significantly misaligned. European firms are more aligned and supported by climate regulations, unlike their US counterparts facing anti-ESG laws.
The upcoming COP28 UAE conference will shape government roles in achieving net-zero goals. Sovereign wealth funds and pension funds are increasingly aware of their obligations and responsibilities to restructure their portfolios in accordance with the Paris agreement on climate change. This will eventually have an impact on how commercial asset managers and force them to react.