This week, we attended and sponsored drinks at the Responsible Asset Owners Europe event on the 21st of November. The event was a great mix of decision-makers in Funds, Advisory, and Regulation focusing on innovation, collaboration, and leadership. There were many insightful discussions and panels, here are the key highlights from the sessions and panels that stood out.

Fireside Chat: Waving the Magic Wand

Speakers: Hayden Morgan, Partner and Head of Sustainability Advisory at Pinsent Mason & Dan Grandage, Head of Sustainable Investing at abrdn

This session explored the balance between strategic vision and compliance in sustainable investing.

• The Evolution of Regulation: While regulations have historically hindered strategic capital allocation, they are evolving to better support impactful investment. However, gaps remain, particularly around harmonising regulations across jurisdictions.
• Double Materiality in Focus: The emphasis on addressing financial materiality alongside environmental and social impacts reflects growing investor awareness. Misalignment persists, but discussions highlight the potential for ESG to deliver dual value.
• Tackling Greenwashing: Standardised definitions and improved reporting were identified as critical to combating greenwashing and maintaining trust in sustainable investing.
• Technology’s Role: The conversation highlighted the transformative potential of advanced data analytics, AI, and blockchain in ESG reporting and decision-making. These tools can address the complexities of tracking environmental, social, and governance metrics.
• ESG Terminology and Public Perception: The panel underscored the importance of redefining ESG to avoid politicisation while retaining its core principles. This requires consistent messaging and collaboration among stakeholders.

Transition Panel: The Net Zero Balancing Act

Panellists: David Russell – Chair of the Board, Transition Pathway Initiative;  Naomi Clark – Head of Investment Product Management, USS Investment Management; , Sonja Laud – Chief Investment Officer, Legal & General Investment Management; Mark Hill – Climate & Sustainability Lead, The Pensions Regulator & Moderated by Dr Rory Sullivan – CEO, Chronos Sustainability

Achieving net-zero demands a balance between ambition and pragmatism. This panel provided actionable strategies to navigate this complex journey.

• Collaborative Solutions for Systemic Issues: Asset owners, regulators, and policymakers must unite to address systemic challenges like fragmented metrics and policies. Global policy alignment is crucial to foster meaningful progress.
• Target Setting and Accountability: While long-term net-zero goals like 2050 provide direction, intermediate steps are essential. The panel stressed the need to shift from backward-looking carbon metrics to forward-looking transition strategies.
• Engaging the “Laggards”: Asset managers should prioritise transitioning companies over divestment to maximise systemic impact. Incentives and strategic engagement can drive progress in slower-moving industries.
• Regulatory and Market Challenges: Trustees face a steep learning curve due to the increasing complexity of ESG factors. Clearer regulations and market mechanisms that reward sustainable strategies are key to overcoming these barriers.
• The Role of Private Markets: Private markets are a promising avenue for investing in breakthrough technologies, but access remains limited for smaller pension schemes. This highlights the need for broader inclusion.
• A Just Transition: Balancing environmental goals with socio-economic realities, particularly for marginalised communities, remains critical. Policymakers must lead in crafting supportive policies that promote equity.

Final Takeaway: Collaboration, data harmonisation, and systemic alignment are indispensable for achieving net-zero targets.

Stewardship & Governance: Is It Delivering?

Speakers: Caroline Escott – Senior Investment Manager at Railpen;  Catherine Howarth – Chief Executive at ShareAction; Jim Foley – Director at Trustee Decisions Ltd, Leanne Clements – Head of Responsible Investment at The People’s Partnership & Moderated by Will Martindale – Co-founder and Managing Director at Canbury Insights

Stewardship is essential for driving change, but is it living up to its potential? This engaging panel evaluated the current state of stewardship and governance, highlighting its shortcomings and opportunities for improvement.

• Challenges of Stewardship: Many organisations underfund stewardship, limiting their ability to tackle systemic issues. The panel stressed the need for a shift from reactive approaches to proactive strategies grounded in measurable outcomes.
• Policy Engagement: To drive systemic change, asset owners and managers must collaborate on influencing public policy. For example, Railpen and other leaders are engaging with regulators to address global challenges like climate change.
• Quality Over Quantity: Effective stewardship focuses on targeted, high-quality engagement. Reactionary responses dilute impact and create inefficiencies. A robust theory of change can help prioritise meaningful actions.
• Barriers to Progress: Under-resourcing, fragmented voting practices, and inconsistent reporting frameworks hinder meaningful stewardship. Addressing these challenges requires collaboration and innovation in technology-driven solutions.
• Stewardship Costs and Value: While better stewardship may demand higher costs, the panel agreed that investments should align with clear, systemic outcomes.
• Systemic Stewardship: Unified approaches, such as shareholder resolutions and strategic voting, are essential for addressing global challenges like climate change and inequality.

Key Recommendations: Regulators should maintain strong frameworks like the UK Stewardship Code, while asset owners invest in strategic partnerships to maximise impact.

Biodiversity Panel: Valuing Nature in Investments

Speakers: Dr. Sally Uren – Chief Executive at Forum for the Future; Leandros Kalisperas – Chief Investment Officer at West Yorkshire Pension Fund; Tim Doubleday – CFO at Burger King UK; Peter Bachmann – Managing Director at Gresham House & Moderated by Jamie Broderick – Deputy Chair at the Impact Investing Institute.

This session explored the growing need to integrate biodiversity into financial decision-making.

• Nature as an Asset: The panel emphasised assigning economic value to natural assets, such as ecosystems and biodiversity, to make their preservation financially viable. Nature underpins $44 trillion in global assets, yet its economic value often goes unrecognised. By pricing ecosystem services, investors can better integrate biodiversity into decision-making. For example, understanding the cost implications of losing pollinators like bees could incentivize regenerative practices. 
• Turning Biodiversity Into Investable Assets: Nature-based solutions, such as habitat restoration and regenerative agriculture, offer scalable investment opportunities. Initiatives like biodiversity net gain (BNG) credits are driving capital into projects that benefit both ecosystems and investors. Projects like habitat banks showcase the potential of turning ecosystem services into investable assets. The UK Environmental Act mandates biodiversity gains, encouraging market participation.
• Challenges in Scaling Biodiversity Efforts: Although consumers care about sustainability, they often resist changing their habits. Asset managers and pension funds, with their long-term horizons, are better positioned to lead by example.
• Carbon Markets and Biodiversity: The voluntary carbon market is gaining traction as part of net zero strategies. However, the panel warned that offsets must align with broader biodiversity goals to ensure positive impacts.
• Solutions for Scaling Impact: To achieve meaningful biodiversity outcomes, large-scale investments that harm nature must be curtailed while funding flows to This session explored the critical role of biodiversity in sustainable investing and highlighted innovative solutions to address biodiversity risks.

Final Takeaway: Investing in biodiversity not only ensures environmental sustainability but also secures long-term financial returns.

Final Thoughts

The event highlighted both the immense challenges and exciting opportunities in responsible & sustainable investing. As we move forward, collaboration between regulators, asset owners, and companies will be crucial. Tackling systemic issues, refining ESG strategies and valuing biodiversity are vital steps toward building a sustainable future. Technology solutions such as the Maanch Engagement Tracker can bridge the gap between different stakeholders and assist investors in making systemic changes.