Another key problem is the partial coverage of coal policies: they apply to a very limited portion of their total portfolio. When looking at their ‘passively’ managed assets, which is a growing issue for the climate, the problem is obvious: only three asset managers, managing rather small amounts of ‘passive’ investments, apply their coal policy to all or most of their ‘passive’ investments. Overall, 18 asset managers do not have public rules to exclude coal from most of their ‘passive’ investments.
The problem is similar with mandates: only eight asset managers assessed apply their exclusions by default to their investments via mandates. Altogether this means concretely than less than 25% of the total combined assets of all managers are currently covered by coal exclusion criteria.
To remedy this situation, asset managers must immediately divest from companies developing coal projects and start divesting now from coal companies for a complete exit by 2030/2040. By that, the report specifically advocates asset manager to apply such recommendations to their whole portfolio. This also means dealing with the growing issue of ‘passive’ investment.