SENNA

Title: Investors Demand Stronger Climate Lobbying Oversight as Asset Managers Fall Short

Introduction:
The financial industry is facing increasing scrutiny over its climate lobbying practices, with a new report from FinanceMap revealing that many asset managers are "inactive or inconsistent" in their stewardship efforts. As investors become more attuned to the risks posed by climate change, they are pushing for greater transparency and alignment between asset managers' public stances and their behind-the-scenes lobbying activities. This disconnect highlights the urgent need for the industry to strengthen its climate commitments and ensure its actions match its rhetoric.

Key Takeaways:
- FinanceMap's assessment found that investors are mostly focused on disclosure rather than the alignment of asset managers' lobbying activities with a 1.5°C climate target.
- Many asset managers are failing to provide clear and consistent information on their climate lobbying practices, making it difficult for investors to evaluate their true climate commitments.
- The report highlights the need for the financial industry to improve its climate lobbying stewardship and ensure its actions support its public sustainability pledges.
- Investors are calling for more robust oversight and accountability measures to hold asset managers accountable for their climate lobbying activities.
- The findings underscore the growing importance of climate-related financial risks and the need for the industry to take a more proactive and transparent approach to addressing them.

Detailed Analysis:
The FinanceMap report, titled "Asset Managers' Climate Lobbying: Assessing the Consistency of Asset Managers' Public Positions and Lobbying Activities," examined the climate lobbying practices of 59 of the world's largest asset managers, representing over $69 trillion in assets under management. The assessment found that the majority of asset managers were "inactive or inconsistent" in their climate lobbying stewardship, with many failing to provide clear and comprehensive information on their lobbying activities.

One of the key findings was that investors are primarily focused on disclosure rather than the alignment of asset managers' lobbying activities with a 1.5°C climate target. This suggests that while investors are demanding more transparency, they are not yet pushing for the kind of meaningful action and accountability that is needed to drive real change.

The report also highlighted the lack of consistency between asset managers' public sustainability commitments and their behind-the-scenes lobbying efforts. Many asset managers, for example, have made bold public pledges to support the transition to a low-carbon economy, but their lobbying activities may be undermining these commitments by opposing climate-related regulations or supporting policies that favor fossil fuel interests.

This disconnect between rhetoric and action is particularly concerning given the growing recognition of the financial risks posed by climate change. As investors become more attuned to these risks, they are demanding that asset managers take a more proactive and transparent approach to addressing them, including through their lobbying activities.

Expert Perspective:
"The findings of this report are a wake-up call for the financial industry," said Jane Doe, a senior responsible investment analyst at XYZ Asset Management. "Asset managers have a critical role to play in driving the transition to a low-carbon economy, but they can't do that if their lobbying activities are working against their public sustainability commitments. Investors need to see a clear and consistent alignment between what asset managers are saying and what they are doing, and this report highlights the urgent need for the industry to address this gap."

Doe emphasized the importance of robust oversight and accountability measures to ensure that asset managers are held accountable for their climate lobbying practices. "Investors need to be able to trust that asset managers are acting in their best interests and supporting the transition to a sustainable future. This means not only improving disclosure, but also ensuring that asset managers' lobbying activities are fully aligned with their public sustainability pledges."

Conclusion:
The FinanceMap report underscores the growing importance of climate-related financial risks and the need for the financial industry to take a more proactive and transparent approach to addressing them. As investors become more attuned to these risks, they are demanding that asset managers strengthen their climate lobbying stewardship and ensure that their actions match their rhetoric.

While the report highlights the shortcomings of many asset managers in this area, it also presents an opportunity for the industry to demonstrate its commitment to sustainability and rebuild trust with investors. By improving transparency, aligning their lobbying activities with their public sustainability commitments, and embracing robust oversight and accountability measures, asset managers can play a critical role in driving the transition to a low-carbon economy and safeguarding the long-term interests of their clients.

FAQs:

1. What is climate lobbying stewardship, and why is it important?
Climate lobbying stewardship refers to the ways in which