Greenpeace deplores the ineffective environmental commitment of asset managers at the largest banks and insurance companies. The will to implement active ownership measures to protect natural resources is lacking.
The asset managers of the largest Swiss banks and insurance companies are far from being sufficiently committed to protecting the environment and the climate, complains Greenpeace. This is the conclusion of a new analysis on the subject of environmental stewardship commissioned by Greenpeace Switzerland. There are differences in the degree of ambition and the maturity of the processes. Nevertheless, not a single asset manager pursues a strategy that is sufficient to protect the natural foundations of life. «The industry urgently needs to be regulated», demands the environmental organization.
None of the 14 asset managers apply appropriate stewardship
The study contains a ranking of the most important asset managers operating in Switzerland: AXA Investment Managers, BlackRock, BCV, Credit Suisse Asset Management, GAM Investments, Lombard Odier Investment Managers, Pictet, Raiffeisen, J. Safra Sarasin, Swisscanto, Swiss Life Asset Managers, UBS Asset Management, Vontobel and Zurich Invest. «However, the first three places in the ranking remain empty. This is because none of the 14 asset managers apply engagement practices or stewardship towards the companies they invest in that are actually in line with international climate and nature conservation goals», criticizes Greenpeace. Swiss Life and Blackrock are the worst, Pictet and AXA the least mediocre. In view of its size and importance for the Swiss financial center, UBS's sixth place is far from sufficient. «The big bank must quickly profile itself as a real leader in environmental and climate responsibility», Greenpeace propagates.
Asset managers effectively dispense with environmental management
According to Greenpeace, investment stewardship is a powerful tool that investors and asset managers can use to influence the environmental and climate impact of the companies in which they invest and thus fulfill their responsibilities. «Unfortunately, the analysis shows that no asset manager consistently demands more sustainable business practices from the companies they invest in. Asset managers are therefore effectively foregoing environmental management that actually has a positive impact», says Greenpeace.
It's all about minimizing risk and maximizing profit
The processes and structures that asset managers have developed for their engagement and voting are not used for the environment, but to minimize risks and maximize profits, Greenpeace claims. Even climate issues are approached by asset managers primarily from this perspective. The industry claims that 20% of sustainability-related investments achieve a positive impact through active ownership. However, the results of the study cast doubt on this claim.
Asset managers deliver empty promises
These inadequate strategies are in blatant contradiction to the goals of asset managers with regard to climate and nature conservation and to the sustainable image that many of them give their products. They also contradict the recommendations of the Federal Council, Greenpeace reiterates. The latter calls for asset managers to publicly demonstrate how their stewardship strategies are compatible with the sustainability goals they support.
'Offenders' are rarely sanctioned
«These results are particularly frustrating when you consider how much influence asset managers could have through their commitment and the exercise of voting rights», says Niki Vischer, expert for sustainable finance at Greenpeace Switzerland. «Instead, we are seeing a lack of will in the implementation of active ownership measures to protect natural resources. The escalation strategies lack coherence. Invested companies whose activities have been fueling global warming and destroying nature for years are very rarely sanctioned.»
Regulation is urgently needed
Peter Haberstich, expert for sustainable finance at Greenpeace Switzerland, adds: «In order to fulfill their responsibility to preserve the basis of life, asset managers must consistently use their influence to ensure that international climate and nature conservation goals can be achieved.» And he continues: «They must set their expectations of the companies they invest in on the basis of these goals and express them clearly and bindingly. Our analysis shows once again that the voluntary initiatives of the financial sector with regard to sustainability are inadequate. Regulation is urgently needed. To this end, we are preparing a popular initiative in collaboration with many other organizations.»
