Fund managers ‘unaware’ of upcoming ESG disclosure requirements
30 July 2020 London
Image: Chinnapong/Shutterstock
One third of fund managers for infrastructure investment funds are unaware of the upcoming EU disclosure requirements, according to research by Linklaters.
The requirements, which are due to come into effect in March 2021, instruct funds to disclose their approach to environment, social and corporate governance (ESG) considerations in investment decision making.
The research, commissioned by Linklaters and carried out by Censuswide, defined green infrastructure as renewable or low carbon energy, smart meters and buildings, electric vehicle charging points, low energy heating and lighting, and battery energy storage.
Almost one quarter of surveyed investment fund managers expected to grow their proportion of green portfolio assets by more than 20 percent in the next two years, while 23 percent of participants expected growth of up to 30 percent.
However, only 24 percent of respondents cited green infrastructure to be the sector providing the most opportunities following the COVID-19 pandemic, with more looking towards digital assets instead.
For those survey participants looking to invest in green assets, over one third cited green and climate-resilient real estate to be a priority, followed by electric vehicles and their accompanying networks.
Interest surrounding green infrastructure and investment has been catalysed by the promotion of ESG credentials and transparency to the top factors that fund managers are most likely to consider when managing a portfolio.
Vanessa Havard-Williams, global head of environment at Linklaters, warned: “The EU disclosure requirements are due to come into force in just over seven months. For those funds who are yet to be across the detail, the clock is ticking, and they will need to move quickly to ensure compliance.”
“The appetite for green is clearly growing and fast, but there is plenty of room for growth in this space, especially if we are to meet the ambitious global climate goals that have been set for the coming decades.”
“Funds are recognising the role they can play in the green recovery from the COVID-19 crisis and will be spurred on by upcoming EU regulations that embed ESG into investment decision-making,” Harvard-Williams concluded.
The requirements, which are due to come into effect in March 2021, instruct funds to disclose their approach to environment, social and corporate governance (ESG) considerations in investment decision making.
The research, commissioned by Linklaters and carried out by Censuswide, defined green infrastructure as renewable or low carbon energy, smart meters and buildings, electric vehicle charging points, low energy heating and lighting, and battery energy storage.
Almost one quarter of surveyed investment fund managers expected to grow their proportion of green portfolio assets by more than 20 percent in the next two years, while 23 percent of participants expected growth of up to 30 percent.
However, only 24 percent of respondents cited green infrastructure to be the sector providing the most opportunities following the COVID-19 pandemic, with more looking towards digital assets instead.
For those survey participants looking to invest in green assets, over one third cited green and climate-resilient real estate to be a priority, followed by electric vehicles and their accompanying networks.
Interest surrounding green infrastructure and investment has been catalysed by the promotion of ESG credentials and transparency to the top factors that fund managers are most likely to consider when managing a portfolio.
Vanessa Havard-Williams, global head of environment at Linklaters, warned: “The EU disclosure requirements are due to come into force in just over seven months. For those funds who are yet to be across the detail, the clock is ticking, and they will need to move quickly to ensure compliance.”
“The appetite for green is clearly growing and fast, but there is plenty of room for growth in this space, especially if we are to meet the ambitious global climate goals that have been set for the coming decades.”
“Funds are recognising the role they can play in the green recovery from the COVID-19 crisis and will be spurred on by upcoming EU regulations that embed ESG into investment decision-making,” Harvard-Williams concluded.
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