London corporate partner Melanie Wadsworth authored an article for ESG Investor that focuses on how addressing environmental concerns — along with social and governance issues — is increasingly expected to be at the heart of every firm’s investment process. Wadsworth highlights how the United Nation’s Climate Action Pathway for Finance, which aims for asset managers to adjust their business models to ensure that every financial decision takes climate change into account by 2050, has driven this shift.
The article discusses challenges asset managers will face in seeking to embrace the climate-related disclosure regime. Wadsworth highlights how, to stay ahead of the competition, asset managers should be prepared to provide innovative investment solutions for clients seeking to migrate capital away from high-carbon products and services. Asset managers should also be able to demonstrate a clear understanding of the environmental, social, and governance profile of the assets in which they invest.