New research published by responsible investment campaigning group Share Action has revealed, what it says are “alarming failures” by the world’s largest asset managers to respond to the climate crisis.
In the fifth edition of Point of No Returns ranks 76 of the largest players in the market, who together control over $80trn (£59bn) assets under management, on whether they meet achievable responsible investment standards.
Share Action says that across the board investment firms are “failing to consider the long-term interests of asset owners”, with progress in the industry towards responsible investment “stagnating”.
Share Action also noted that while asset managers might have reasonable policies across a number of their funds, the findings call into question their broader approach, which prioritises short-term profit over long-term sustainability.
Share Action set 20 standards that asset managers are expected to achieve – but 87% of the managers don’t meet half of them, said the campaigning group.
The standards ask whether asset managers are including “robust” climate policies, avoiding damage to important ecosystems and protecting human rights – and all were met by at least one asset manager.
But Claudia Gray, head of financial sector research at Share Action, said: “We are seeing progress stagnate on responsible investment at a time when rapid action is needed.”
The report comes as the wider industry is faced with political pressures and an intensifying ESG backlash, particularly from President Trump in the US.
However, ShareAction’s research reveals that the slowdown in new commitments from asset managers predates this.
Of the 60 firms that featured across the group’s three last benchmarks, all asset managers with a tobacco or coal commitment in the 2025 report already had one in 2022.
A few European asset managers are demonstrating “robust” responsible investment policies and practices, with Robeco landing the top spot in the benchmark for the third successive time.
Gray added: “It’s encouraging to see some asset managers leading the charge on responsible investment, but ultimately we need others to follow suit and for ambition to be much higher right across the sector.”
And she noted that asset owners have a big responsibility on this issue. “Asset owners need to push asset managers to secure their long-term interests,” Gray said.
“At this critical time, they [asset owners] must keep the pressure on their managers to take the steps needed to protect people and planet for generations to come, even if it means ending relationships with firms who fail to meet their expectations on responsible investment,” Gray added.
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