Our 2022 ESG manager survey reveals that the widespread integration of environmental, social and governance (ESG) factors by the asset management community appears to enhance investment processes, providing a more comprehensive, forward-looking picture of investment opportunities. At the same time, regulators across the globe are stepping in to establish standards for sustainability frameworks—to provide for increased portfolio transparency as the data used to assess whether a product is ESG-managed or sustainable continues to attract heavy scrutiny.
These efforts are being undertaken in large part to tackle the practice of greenwashing—the overstating of the ESG profiles of financial securities and products—although our survey shows that the asset management community believes there is still much more work to be done in this regard. The survey results also indicate that investors are continuing to demand standardized disclosures of key ESG metrics—and that asset managers are increasingly responding to this request.
In addition, this year's survey shows that net-zero commitments from asset managers are gaining momentum across the globe, while climate-related disclosures are also expanding. Just as significant, the 2022 survey highlights the vital role that engagement activities continue to play in confronting climate risk and expanding DEI (diversity, equity and inclusion) disclosures.