Green Finance: Global Asset Managers Progress Toward Tracking Sustainability Profiles of Portfolios

December 6, 2022

In its 2022 Global Asset Manager Survey focused on emerging and frontier markets, consulting firm Mercer polled over 400 asset managers across the globe, representing over $51 trillion of assets under management. The survey found that only 27% of respondents have established climate transition targets such as net-zero in their portfolios, with only 16% having set science-based net-zero targets. On the other hand, 58% of managers track portfolio company emissions, 64% have established climate transition targets, 39% track forward-looking transition metrics such as target setting, and 59% have policies regarding how climate change is incorporated into their portfolios.  In addition, 89% of respondents identified ESG-related transparency and disclosure as a barrier to investing in emerging markets, with 82% citing more regulation around financial reporting as a key to supporting increased allocations. 

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