The majority of world’s largest asset managers are “far off track” on meeting their own 2050 net-zero commitments, according to a study by FinanceMap.

Its analysis found that the majority of the largest global asset managers had not improved their climate performance over the past two years and some had reversed positive trends, despite most having set net zero by 2050 targets.

The report stated that 95 per cent of equity fund portfolios were misaligned with net-zero targets, stewardship efforts had “stagnated”, and some assets managers did not support emerging sustainable finance policies.

“The data shows that while they may talk the talk, most asset managers are not walking the walk when it comes to using their influence to drive real change in investee companies and sustainable finance policy,” said FinanceMap program manager, Daan Van Acker.

The research, which assessed the portfolios of the world’s 45 largest asset managers, found that the asset managers collectively held 2.8 times more in equity value in fossil fuel production companies than in green investments.

Furthermore, the number of stewardship ‘A-list’ asset managers, which are those assessed to be carrying out ambitious and effective climate stewardship practices, had decreased by 45 per cent since 2021, according to the study.

FinanceMap noted that while US asset managers had always lagged behind their European counterparts on sustainability practices, they appears to have fallen back even further on their ambition in top-line climate messaging, company engagements and resolution voting.

Support for climate-positive shareholder resolutions was found to have fallen, with the average asset manager supporting 50 per cent of these kinds of resolutions in 2022, compared to 61 per cent in 2021.

This trend was particularly evident amongst US asset managers, falling from 50 per cent to 36 per cent.

Despite the negatives, some asset managers, such as Nataxis and Schroders, posted positive Paris alignment scores.

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