Decoding Effective Stewardship, Recommendations for Impactful & Data driven Stewardship Download the Whitepaper

Interested in maximising your impact?

Get in touch

Demystifying the UK ESG Investing Ecosystem

By Team Maanch  |  
March 11, 2021  |  
2 minutes read

The UK is well-positioned to maintain and strengthen its position as a global leader in Sustainable Finance. It has already demonstrated a number of ‘firsts’: the first country to adopt a climate change act (2008 Climate Change Act), embed Net Zero carbon emission targets in its legislature and most recently, to make climate change financial disclosures – TCFD as developed by the Financial Stability Board – mandatory across the economy.

The UK investment management industry is the second largest investment management centre in the world (£9.9 trillion assets under management or 14.7% of the £67 trillion global assets under management) after the US and is the largest centre in Europe. With a European market share of 37%, it is larger than the next three European centres (France, Germany and Switzerland) combined.

As of the end of 2019, 38% of assets under management incorporate ESG factors into their investment selection processes (up from 26% a year before). Exclusion policies are applied to 19% of total assets under management (AUM). Despite the growth in AUM and the investor interest reported by the investment association members, sustainability focused approaches and impact investing remain a relatively small proportion of the industry with 1.4% and 0.3% of assets respectively.

    Download the Full Report

    Full Name

    Email

    Company

    Title

    The objective of this working paper is to provide a bird’s eye view reference guide to the UK ESG Investing Ecosystem by summarising and explaining:

    • Key relevant definitions

    • Reporting frameworks

    • Initiatives and organisations

    Highly relevant for Asset Managers, Asset Owners and anyone else interested in the ESG investing topic, this report helps to bring clarity to a very crowded and confusing field that is ESG.


    Receive Monthly Maanch updates right in your mailbox

    Email

    To receive updates from Maanch sign up here

    Was this article helpful?

    Other Blogs

    Blog

    Enhancing Stewardship Impact: The Crucial Role of Tracking Engagement Outcomes

    Success in stewardship demands dedication and thorough reporting on the outcomes of engagement efforts, showcasing the positive impacts on clients, consumers, the economy, and society at large.

    Read More February 21, 2024
    Blog

    The Role of Collaborative Engagements Among Asset Managers

    Collaborative engagements are transforming asset management, with ESG considerations becoming integral to risk management and long-term value creation. European and North American firms are leading the way, setting a precedent for global sustainable investment practices.

    Read More February 12, 2024
    Blog

    Thematic Engagements: Roundtable Summary

    In a year marked by systemic challenges—from climate change to social inequality, biodiversity loss, and health crises—asset managers play a pivotal role in fostering positive transformation. This roundtable uncovered thematic engagements and their crucial role in steering responsible stewardship.

    Read More December 14, 2023