Asset managers’ ESG disclosures: rhetoric or cause for concern?

Is continued pressure on global climate initiatives and broad sustainability considerations affecting manager behaviour?

We explore key findings from our review of asset managers’ sustainability disclosures, highlighting how approaches are changing and what this means for asset owners.

Whilst data matters, the focus needs to be on action. Asset owners need to be confident that managers are driving meaningful change and that climate targets are delivering what's expected.

Over the last five years, significant progress has been made, but the path hasn’t been smooth. As the transition to a decarbonised economy continues, asset owners should consider how well their portfolios are positioned for what lies ahead.

Highlights

From patchwork to tapestry: closing the data gaps

Carbon emissions reporting continues to expand, yet coverage still varies widely by asset manager and fund strategy, particularly in fixed income and multi‑asset portfolios. Alongside carbon, biodiversity factors and social metrics are now gaining meaningful traction.

Net zero progress: decarbonisation vs alignment

Most net zero funds are cutting emissions, but the journey to net zero will be bumpy. Considering temperature alignment, market cap indices remain far away from alignment with net zero goals.

From ballots to dialogue: stewardship shifts

Support for shareholder resolutions (particularly on climate) has declined, most notably in the US. Regional voting priorities differ, yet engagement levels remain broadly steady.

Diversity Equity and Inclusion (DEI) in the crossfire

DEI disclosure has increased, but quality varies. Quantitative data is less common than qualitative, and language has become more cautious - especially among US managers. It appears that pullbacks in public commitments often reflect external pressures rather than reduced action.

Investment Analyst Amy Duggan also contributed to this research.