Why ESG Asset Managers Are Necessary

– ESG-focused asset managers need to define their purpose and communicate their Why to attract and engage stakeholders.
– Clients want investments that produce positive impact and returns, so asset managers need to articulate how they plan to achieve this.
– Asset managers must be careful to define ESG clearly and avoid greenwashing to maintain trust from investors and regulators.
– Authentic ESG asset managers need to back up their marketing messages with concrete actions tied to measurable ESG achievements.
– Collaboration with other industry players and NGOs is necessary for asset managers to have a meaningful influence on corporates and policymakers.
– Asset managers should have in-depth expertise on the ESG issues they prioritize and engage with, and sustained effort and dedication are required.
– Data is important for measuring ESG achievements, but its quality and relevance to the asset manager’s purpose are more important than quantity.
– Regulatory oversight is not enough to prove authenticity of ESG strategies, as some asset managers can exploit loopholes.
– ESG is a journey towards building a better planet, and asset managers should constantly ask and answer the Why to maintain credibility and authenticity.