ShareAction has released this assessment of the asset management industry’s approach to biodiversity, based on comprehensive data collected from 75 of the world’s largest asset managers that collectively hold over US$56 trillion in assets under management. It follows the publication of a ranking of the surveyed managers, released as part of the first Point of No Returns report.
This analysis suggests that although biodiversity-related risks are appearing on the radar of some of the assessed asset managers, none has developed a comprehensive, dedicated biodiversity policy. The vast majority of policies, even where they do discuss biodiversity-related risks, lack concrete commitments. The analysis further highlights the overwhelming reliance of asset managers on the provision of third-party data and limited use of metrics for quantifying biodiversity-related portfolio risks and impacts.
Only 46 per cent request better disclosure of the impacts of company value chains on biodiversity; only 46 per cent discuss corporate strategy on biodiversity; and less than a third engage with portfolio companies on certifications guaranteeing minimum sustainability standards in the sourcing of palm oil and other soft commodities. Deforestation is the most common theme for engagement, with other vital issues such as freshwater, over-fishing and ocean health getting less air time. Only three survey respondents mention instances of engagement on company impact on pollinator populations.
The report's main findings can be summarised into 5 key messages:
Collectively, the industry is failing to integrate biodiversity into corporate engagement and financial decision-making. This report hopes to build momentum for bold, intensified, and sustained effort within the asset management industry to tackle the unprecedented degradation and decline of our natural systems.
COVID-19 has thrown a spotlight on companies’ treatment of low-paid workers. Many such workers still lack the social protections, such as sick pay or medical benefits, which are essential if they become ill.
This report looks at fiduciary duty across eight markets (US, Canada, UK, Germany, Brazil, Australia, Japan and South Africa) through a series of events, interviews, case studies and a legal review.