February 2023
Point of No Returns 2023
Ranking 77 of the world’s largest asset managers’ approaches to responsible investment
We urgently need to address the world’s interconnected human and natural crises. The global cost of living crisis has highlighted this: inflation has soared to multi-decade highs, and the global economic outlook has suffered from geopolitical, social and ecological shocks[i]. These are not easy problems to address.
Asset managers can, and do, play an important role in these issues. They are custodians of a vast amount of global wealth and stewards of many influential corporations. They must demonstrate proactive stewardship of the companies in which they invest, in the best interests of the people whose wealth they look after. International frameworks such as the Paris Agreement[ii], the Sustainable Development Goals[iii], the UN Guiding Principles of Business and Human Rights[iv], and the post-2020 Global Biodiversity Framework[v] require a stewardship approach that looks beyond financial risk and incorporates responsibility and accountability for the real-world impacts of investments.
In this report, we rank the responsible investment policies and practices of 77 of the world’s largest asset managers. We assess the ambition, scope, and transparency of these firms’ approaches to responsible investment, to help determine how far they are safeguarding against key social and environmental risks. We also review progress since our last benchmarking of asset managers in our 2020 Point of No Returns report[vi]. You can find more detail on many of these asset managers’ voting records on shareholder resolutions on environmental and social topics in our 2022 Voting Matters report[vii].
Explore the series
In addition to the general findings, we've produced deep dives into Stewardship and Governance, and social issues. The final edition of this series focuses on asset mangers approaches to climate and biodiversity issues.
Part I - Ranking and General Findings
In this report, we rank the responsible investment policies and practices of 77 of the world’s largest asset managers. We assess the ambition, scope, and transparency of these firms’ approaches to responsible investment, to help determine how far they are safeguarding against key social and environmental risks. We also review progress since our last benchmarking of asset managers in our 2020 Point of No Returns report.
Part II - Governance and Stewardship
With the world facing interconnected ecological and social crises, and scientists warning that climate tipping points are rapidly approaching1, there has never a more urgent time for asset managers to recognise their role in safeguarding the future. Without robust governance and stewardship policies and practices, they risk the assets they manage, the trust of their clients, and the prospects of both people and planet.
Part III - Social
In this report, we assess the world’s 77 largest asset managers' approach to human rights, labour rights, and public health. We found that most asset managers fail to exclude companies with negative social impacts across all their investments and rarely use their influence to tackle issues such as indigenous rights and life-limiting public health problems.
Part IV: Climate and Biodiversity
This report looks at the climate and biodiversity policies and practices of 77 of the world’s largest asset managers, who collectively hold over $77 trillion in assets under management. We found that asset managers need stronger and more comprehensive net-zero targets. Recognition of the importance of biodiversity has grown, but there are few commitments on biodiversity, and risk assessments remain inadequate.