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A snail’s pace on ESG investments: here are the asset managers to reject

ESG investments

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The ranking of ESG investments in the Share Action report

(sustainabilityenvironment.com) – Fidelity Investments is an American investment fund with a portfolio of almost $ 3,800 billion. Anima is an Italian counterpart, much smaller: $250 billion. Blackrock, on the other hand, is one of the largest financial vehicles with over $8.5 trillion and in recent years has started to put pressure on companies whose shares it has to comply with ESG investment regulations. What do they have in common? None of the three really invest responsibly in climate, environmental, social and governance.

This is stated by a Share Action report that lists 77 large global investment funds, with a total portfolio of $77 trillion, based on their performance in environmental, social and governance. The underlying judgment is tranchant: “The world’s largest asset managers are not doing enough to address the most dangerous human and natural crises of our time”.

The ranking of ESG investments

In addition to Blackrock and Fidelity Investments, other industry heavyweights such as Vanguard and State Street Global Advisors also have poor results in ESG investments. On a scale from A to E, taking into account voices like governance, management, climate, biodiversity and social, they all get D or E. I’m in good company. Two thirds of the asset managers analyzed by Share Action, in fact, have a score equal to or lower than triple C. It means that all have at least a strong gap in one or more of the items analyzed. All together, these funds are worth $60 trillion.

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The 2023 edition of the report shows a slight improvement in the performance of many funds. But in a global perspective, change is minimal if not imperceptible. “We have seen some surprising and challenging seeds of progress, with some known names making significant improvements and, in general, with European managers leading the pack. But because global standards remain so low, almost all asset managers need a system shake. There is no more time to act on these global problems if we want to avoid catastrophes,” comments Claudia Gray, Head of Financial Sector Research at Share Action.

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