The role of ESG matters in the operations and investment management activities of asset managers has long been a subject of discussion. In recent years, however, the conversation has become more urgent and focused, driven by the growing evidence of the global impact of climate change. These concerns underlie the United Nations 2030 Agenda for Sustainable Development and 2015 Paris Agreement on Climate Change (Paris Agreement), the latter seeking to combat climate change and to direct finance flows towards low greenhouse gas emissions and climate-resilient development.
These conversations and controversies, which reflect differing attitudes on ESG and its role in asset management, will likely continue for the foreseeable future. For global asset managers, it is becoming increasingly difficult to navigate the differing regulatory approaches to and investor views on ESG in the jurisdictions in which they seek to offer and manage investment products.
