Masja Zandbergen, Head of Sustainability Integration.

Robeco has published a survey on how investors are approaching the opportunities and risks associated with climate change. The survey covers 300 of the world’s largest institutional and wholesale investors in Europe, North America and Asia Pacific, representing a total of around USD 23.4 trillion in assets under management.

Carried out by CoreData Research, Robeco’s 2021 Global Climate Survey shows climate change is already a significant factor in the investment policy of almost three-quarters (73%) of investors surveyed. Nearly all respondents indicated that they already have a formal policy on climate change in place or that climate will be integrated as part of a broader sustainability policy in the near future.

One of the possible paths to a low-carbon economy is to set net zero carbon emissions targets. While the number of investors that have already set a net zero target is relatively small (17%), it’s on an upward trajectory that is expected to rise to over half of all investors (52%) in the next five years. The shift will take place mainly in Europe and North America, where in both regions more than 60% of investors expect to adopt a zero carbon target within this time frame. The Asia Pacific region is behind, with only 29% of investors expecting to do the same.

There is an increasing awareness among investors of the need for decarbonisation and to support the transition away from a dependence on fossil fuels and towards a low-carbon economy. The survey revealed that divesting from carbon-intensive assets will rise sharply in the next five years. And yet, over 40% of investors globally have not divested their carbon-intensive assets over the past five years. This is expected to fall to just 19% for institutional and 25% for wholesale investors in the next five years.

At the same time, there’s a clear demand for more specialised expertise, support and education on climate change, with 44% of respondents globally viewing the lack of data and reporting as the biggest obstacle to implementing decarbonisation. That percentage is even higher in Europe (58%). In the Asia Pacific region, the shortage of suitable low-carbon investment strategies is the biggest concern (54%), and North America sees the lack of internal expertise on decarbonisation as the biggest challenge (45%).

Gilbert Van Hassel, CEO Robeco said: “Moving to a low-carbon economy needs a global effort, with governments, regulators, the corporate sector and individuals all playing their part. This survey shows that the vast majority of investors are committed to tackling climate change, which is a promising sign. Yet it has also revealed a substantial knowledge gap when it comes to fully understanding these major issues, with many investors not knowing where to start or how to make a difference. The time to act really is now. As a global leader in sustainable investing, we see it as our duty to share our passion and expertise with those who have yet to fully embrace it, so that together we can rise to one of the greatest challenges facing humanity: the climate crisis.”

Read the Survey.

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Gilbert Van Hassel

Robeco has come first place in the ranking by the Asset Owners Disclosure Project (AODP), a project managed by the responsible investment organization ShareAction.

ShareAction ranked 75 of the world’s largest asset managers according to their responsible investment practices, with a specific focus on governance, climate change, human rights and labor standards, and biodiversity. The survey ranks asset managers based on disclosure and management of ESG risks and impacts across their portfolios.

Using data collected through an extensive, TCFD-aligned survey as well as publicly available information, the report gives an overview of global trends in the adoption of responsible investment practices within the asset management industry.

The report also reveals that there are huge differences between regional markets, and that many asset managers are still failing to translate public commitments into strong action on stewardship and wider ESG integration.

Gilbert Van Hassel, CEO Robeco: “We are extremely proud to be recognized as a sector leader in ShareAction’s assessment. Our place at the top of the leaderboard reflects our longstanding history in this field, and our commitment to driving positive change through rigorous stewardship and focus on ESG integration.

“Robeco already saw the potential of including sustainability as a way to add value for our clients in the 1990s, and this ranking reflects our rich heritage and long-term expertise in this field. Sustainability expertise is not something you can build overnight, but it’s good and important to see so many asset managers now joining in, as we won’t be able to solve big problems like climate change on our own. However, it is equally important that statements in the public domain are backed up by actions and concrete initiatives.

“This report provides insightful information as to which asset managers are putting their money where their mouth is.”

Felix Nagrawala, Senior Analyst at ShareAction: “ShareAction’s most ambitious study yet reveals who is really walking the talk on environmental and social issues, and who is dragging their feet in the asset management space.

“While many in the industry are eager to promote their ESG credentials, our analysis clearly indicates that few of the world’s largest asset managers can lay claim to having a truly sustainable approach across all their investments.

“Our results show that some asset managers, including Robeco which ranks first, are showing real leadership and are a positive exception. We hope that Robeco’s approach and scores serve as a good example for the sector, and that other asset managers follow suit.”

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