The data, which polled more than 1,000 UK investors, showed that 83 per cent would expect or want to see their fund manager upskilling in sustainability and environmental issues, while 85 per cent would like or expect their fund manager to help avoid greenwashing claims from financial providers.
Hadewych Kuiper, managing director of Triodos Investment Management, says: “A new generation of investors are demanding more from fund managers and financial providers in terms of sustainability – and rightly so.
"With an increasingly complex sustainable investment landscape, fund managers can play a vital role in helping to separate dubious greenwashing claims from those that truly benefit the planet.
“To meet this consumer demand for impact and transparency, investment managers need to ensure they are staying up to date with the latest products, research and policy developments in sustainability. Only then will investors be able to trust that their money is really being invested in line with their values.”
Maria Nazarova-Doyle, head of pension investments and responsible investments at Scottish Widows, says active asset allocation within multi-asset funds provides investors with the opportunity to allocate to investments with strong ESG credentials.
"For example, we look at economic scenarios which take into account the impact of climate risk and other ESG factors on longer-term asset class projections and use this to help set the strategic asset allocation for our multi-asset funds," she adds.
"The most important tool investors have in their arsenal to fulfil stewardship responsibilities is engagement, including a clear escalation pathway to deliver positive outcomes.
"The mechanics and specifics of engagement and escalation may differ between asset classes – for example, equity owners can choose to vote, and fixed income investors might place covenants on new debt capital. In the end, responsible stewardship can and should be applied to all assets."
Aamina Zafar is a freelance journalist
