2022 Scorecard on asset managers, fossil fuels and climate change

This report, entitled ‘The asset managers fueling climate chaos’ and co-authored by Reclaim Finance, urgewald, ReCommon and The Sunrise Project, is a deep-dive into the engagement and exclusion policies of 30 major investors. It highlights that they are far from doing enough to fight fossil fuel expansion, revealing the empty rhetoric around their net zero commitments, which almost all have taken.

The 30 asset managers assessed in the second edition of this scorecard hold securities worth more than $82 billion in companies developing new coal projects, as well as $468bn in 12 major oil and gas companies with massive upstream expansion plans. All but five are members of the Net Zero Asset Managers initiative, which is itself a key member of the Glasgow Financial Alliance for Net Zero (GFANZ). The report highlights that this exposure to fossil fuel expansion is unlikely to disappear unless the investors change their flawed policies that fail to set a clear process for restricting investments in companies that keep developing new fossil fuels.

A day before the one-year anniversary of the launch of GFANZ, the results are a testament to the alliance’s lack of effectiveness. As shown below, very few members respect their net zero commitments and restrict investments in fossil fuel developers. The report calls on asset managers to finally adopt robust exclusion and engagement policies to tackle fossil fuel expansion.

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