SUSTAINABLE FINANCE
s the stewards of trillions in global capital, asset managers play a pivotal role in directing investment flows, influencing corporate behaviour and shaping the future of economies and societies.
The scale of the industry is staggering – in 2024, global assets under management( AuM) reached a record US $ 128tn, a 12 % increase from the previous year.
But growth is not without challenges. Investors, regulators and the public are demanding greater accountability and transparency, particularly when it comes to ESG.
How is climate change defining asset management? Climate change, biodiversity loss and resource scarcity are no longer abstract risks – they are material factors that can affect asset valuations, returns and long-term viability. Asset managers now routinely conduct comprehensive analyses of potential investments, assessing not only financial metrics but also the environmental impact of companies – evaluating exposure to risks such as climate change, resource depletion and pollution.
“ We all know that avoiding the worst impacts of climate change is crucial for the stability and prosperity of global markets,” says Heather Zichal, Global Head of Sustainability at JPMorganChase. sustainabilitymag. com 139