RImetrics report reveals ‘significant variations’ in ESG practices

The ESG data provider’s research – among global asset managers representing over $12trn of assets and including over half of the world biggest 20 managers –showed that although many fund managers had improved their understanding of the issues involved competencies and practices varying greatly from manager to manager.

The report found the integration of ESG knowledge and research into the investment process posed the greatest challenge for the majority of asset managers – also warning that there were also significant variations in voting practices.

And it found that, while the majority of asset managers had a responsible investment strategy, few had consulted their clients on its development

RImetrics chief executive Jonathan Horton said there was a shift towards "a greater acceptance" of ESC in relation to investment performance and client demand.

"With this has come a greater demand for credible, independent and reliable responsible investment data and information.

He added: "It is clear that the maxim ‘if you can’t measure it, you can’t manage it’ applies in this field just as much as in any other."

Commenting on the report, BT Pension Fund trustee Bill McClory said: "This is a wake-up call to those managers who do not demonstrate good practice."

Responsible Investment co-head of Universities Superannuation Scheme David Russell added: "This report is further evidence that fund managers are struggling to integrate extra financial factors into their investment processes to the extent many trustees would like to see.

"The analysis provides us and other pension funds with a valuable benchmark by which to evaluate manager performance in this important area."