{"id":39375,"date":"2026-03-13T08:00:32","date_gmt":"2026-03-13T07:00:32","guid":{"rendered":"https:\/\/reclaimfinance.org\/site\/?p=39375"},"modified":"2026-04-01T17:34:19","modified_gmt":"2026-04-01T15:34:19","slug":"when-some-asset-owners-lead-the-way-in-changing-asset-managers-climate-practices","status":"publish","type":"post","link":"https:\/\/reclaimfinance.org\/site\/en\/2026\/03\/13\/when-some-asset-owners-lead-the-way-in-changing-asset-managers-climate-practices\/","title":{"rendered":"When some asset owners lead the way in changing asset managers\u2019 climate practices"},"content":{"rendered":"

In 2025, <\/span>some <\/span>European and North American <\/span>asset owners<\/span> took unprecedented action to encourage their external asset managers to better manage climate-related risks. These initiatives are essential at a time when asset manager’s massive support for fossil fuels continues and even intensifies<\/a><\/span><\/span><\/span>, fuelling an ever more threatening climate crisis. However, <\/span>the majority of<\/span> asset owners<\/span> remain<\/span> too silent. Reclaim Finance reviews the examples to follow and calls on all <\/span>asset owners<\/span> to strengthen their <\/span>engagement<\/span> and climate criteria for selecting external managers, in line with their fiduciary duty.<\/span><\/span><\/p>\n<\/div>

Asset owners have a clear fiduciary obligation: to act in the best interests of their beneficiaries and\/or clients, both today and in the long term. Climate change is one of the main threats to the economy. Global warming could cause a 50% loss in GDP between 2070 and 2090 [1], and a 40-50% drop in the value of global equities by mid-century [2]. Beyond these economic considerations, every fraction of a degree of additional global warming leads to a deterioration in living conditions.<\/span><\/p>\n

Asset owners\u00a0therefore have a\u00a0significant\u00a0responsibility to reduce climate risks and impacts.\u00a0In particular, they\u00a0can use their influence as clients to encourage their external asset managers to step up their climate action\u00a0across all assets under management. This requires looking beyond\u00a0the mere application of\u00a0each\u00a0asset owner’s climate commitments to delegated assets.<\/span><\/p>\n<\/div>

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Asset managers\u00a0<\/span>exacerbating<\/span>\u00a0climate risks<\/span> and impacts<\/span><\/span><\/h2><\/span>
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Most\u00a0large\u00a0asset managers have disastrous climate practices, undermining the efforts of their\u00a0asset owner\u00a0clients committed to the transition.<\/span><\/p>\n

A\u00a0<\/span>recent study\u00a0published\u00a0by Reclaim Finance<\/a><\/span>\u00a0shows\u00a0that most\u00a0large\u00a0managers continue to provide massive support to companies developing fossil fuels. The 30 managers assessed\u00a0invested at least\u00a0$16.9 billion in bonds recently issued by the largest fossil fuel developers. Some, such as BlackRock and Amundi, even increased these investments compared to the previous year. And 81% of these managers’ votes\u00a0approved\u00a0the actions of these companies’ boards of directors, supporting their fossil fuel expansion plans.<\/span><\/p>\n

Several managers have also left international climate alliances such as Net Zero Asset Managers (NZAM), recently relaunched with weakened requirements, or the Climate Action 100+ (CA100+) initiative, sending a negative signal about the continuation of their already insufficient climate action.<\/span><\/p>\n<\/div>

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Selecting external managers based on robust climate criteria<\/span><\/span><\/h2><\/span>
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In 2025, several\u00a0asset owners\u00a0withdrew mandates from asset managers due to sustainability concerns. Dutch pension funds PFZW and PME withdrew mandates from BlackRock, while the UK’s The People’s Pension and Denmark’s\u00a0Akademiker\u00a0Pension did the same for mandates entrusted to State Street. In France,\u00a0Pr\u00e9fon\u00a0delisted 13 funds\u00a0from\u00a0its range of unit-linked life insurance products, including a BlackRock fund [3]. Several press articles have\u00a0indicated\u00a0that other changes of managers have also taken place without public communication.<\/span><\/p>\n

Across the Atlantic, former New York City Comptroller Brad Lander recommended that three city pension funds end their relationships with BlackRock due to its inadequate climate strategy [4].<\/span><\/p>\n

Some asset owners publicly disclose their climate selection criteria, thereby avoiding having to break with certain managers afterwards. For example, French insurer MAIF no longer entrusts new investments to managers who have not defined a strategy for phasing out thermal coal by 2030 [5]. Also, last April, the New York City pension fund controller published a list of climate expectations for managers, which will be used as a basis for appointing new managers for upcoming mandates [6].<\/span><\/p>\n

These initiatives are a step in the right direction, but they need to be multiplied\u00a0in order to\u00a0have a real impact on asset managers.<\/span><\/p>\n<\/div>

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Encouraging asset managers to\u00a0<\/span>change<\/span>\u00a0through active dialogue and\u00a0<\/span>progressive<\/span> escalation<\/span><\/span><\/h2><\/span>
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Some\u00a0asset owners\u00a0have\u00a0initiated\u00a0dialogue with\u00a0their external\u00a0managers. In February 2025, a coalition of\u00a0asset owners\u00a0representing\u00a0\u00a31.5 trillion in investments issued a statement calling\u00a0on their asset managers to develop a robust engagement strategy to address climate risks\u00a0[7]. Last August, the finance\u00a0officials\u00a0of 17 US Democrat\u00a0states asked major US managers to reaffirm their commitment to managing climate risks [8]. More recently, 42\u00a0asset owners\u00a0called on managers to join the Net Zero Asset Managers alliance [9].<\/span><\/p>\n

These initiatives are welcome, as the influence of\u00a0asset owners\u00a0is<\/span>\u00a0<\/span><\/b>strengthened\u00a0when exercised\u00a0publicly and collectively. However, it is essential that the dialogue focuses on demands for concrete action by managers, such as ending fossil fuel\u00a0investments, and not just on general principles or membership of climate coalitions, whose requirements are often weak.<\/span><\/p>\n

Furthermore, without sanctions\u00a0planned, the dialogue risks being\u00a0unsuccessful. To be credible,\u00a0asset owners\u00a0must adopt a clear escalation strategy,\u00a0indicating\u00a0to managers that they will only be entrusted with new assets if they\u00a0comply with\u00a0their climate criteria.<\/span><\/p>\n<\/div>

In the face of climate risks,\u00a0<\/span>asset owners<\/span>\u00a0must use all the levers at their disposal, including their influence\u00a0<\/span>o<\/span>ver\u00a0<\/span>asset managers. Their\u00a0<\/span>asks<\/span>\u00a0must focus primarily on ending support for fossil fuel expansion, both through new investments and\u00a0<\/span>votes in favour of management-proposed resolutions<\/span>.<\/span><\/span><\/strong>
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Our detailed recommendations for asset owners<\/span><\/a><\/div><\/div><\/div>
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Notes:<\/h3><\/span>
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  1. Institute and Faculty of Actuaries, University of Exeter, <\/span>Current climate policies risk catastrophic societal and economic impacts<\/span>,<\/span><\/a>\u00a016\u00a0January\u00a02025<\/span>\u00a0<\/span><\/li>\n
  2. EDHEC Climate Institute,\u00a0<\/span>How Does Climate Risk Affect Global Equity Valuations? A Novel Approach<\/span><\/span><\/a>,\u00a0July 2024<\/span>\u00a0<\/span><\/li>\n
  3. Pr\u00e9fon, <\/span>Pr\u00e9fon Vie Responsable : un engagement responsable qui se renforce dans le temps<\/a><\/span>\u00a0(in French\u00a0only),\u00a09\u00a0February\u00a02026<\/span>\u00a0<\/span><\/li>\n
  4. For the time being, no mandates have been withdrawn. The decision rests with each individual pension fund.<\/span>\u00a0<\/span>Office of the New York City Comptroller, <\/span>Comptroller Lander\u00a0Recommends Pension Boards Drop BlackRock, Fidelity, and PanAgora Due to Inadequate Decarbonization Plans<\/a><\/span>, 26\u00a0November\u00a02025<\/span>\u00a0<\/span><\/li>\n
  5. MAIF,\u202f<\/span>Politiques relatives \u00e0 l\u2019int\u00e9gration des risques en mati\u00e8re de durabilit\u00e9 dans les d\u00e9cisions d\u2019investissement<\/a><\/span>\u00a0(in French\u00a0only),\u00a0January\u00a02023<\/span>\u00a0<\/span><\/li>\n
  6. Office of the New York City Comptroller, <\/span>Holdings Asset Managers Accountable for Net Zero Implementation<\/span>,<\/span><\/a>\u00a022\u00a0April\u00a02025<\/span>\u00a0<\/span><\/li>\n
  7. Financial\u202fTimes, <\/span>Long-term investors split with asset managers over climate risk<\/span>,<\/span><\/a>\u00a013\u00a0February\u00a02025<\/span>
    \nThe People\u2019s Pension,\u00a0<\/span>    Asset owner statement on climate stewardship<\/span><\/span><\/a>,\u00a0February\u00a02025<\/span>\u00a0<\/span>Net Zero Investor,\u00a0<\/span>Eight new asset owners sign statement outlining asset manager climate expectations<\/a><\/span>, 20\u00a0October\u00a02025<\/span>\u00a0<\/span><\/li>\n
  8. ESG Dive, <\/span>Democrat finance officials push asset managers to reaffirm commitment to manage climate risks<\/a><\/span>, 22\u00a0August\u00a02025<\/span>\u00a0<\/span><\/li>\n
  9. Net Zero Investor, <\/span>‘Important and public signal’: Asset owners urge managers to back NZAM<\/a><\/span>, 30 January 2026<\/span>\u00a0<\/span><\/li>\n<\/ol>\n<\/div><\/div><\/div><\/div><\/div>

    Read also<\/h2><\/div>
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