A group of UK wealth managers has issued a collective call for others in the industry to act now on climate change.
The UK Wealth Managers on Climate Group has signed an open letter urging all asset managers to speed up their progress to net zero and support the financial sector’s crucial role in tackling the climate crisis.
The group was formed in September 2023 to bring together wealth managers already working to make a positive impact on climate change and to encourage others in the sector to step up their actions.
Today, the UK wealth management industry controls over £1 trillion. The investment decisions made by asset managers have tremendous influence over whether the fight against climate change can be won – or not.
With rising temperatures posing an ever-increasing threat to global ecosystems, the UK Wealth Managers on Climate group brings sustainably-minded wealth managers together to speak with one voice.
Now, the nine members of the group (EQ Investors, Cazenove Capital, Paradigm Norton, Quilter Cheviot, Sarasin & Partners, Greenbank, 7iM, LGT Wealth Management and Tribe Impact Capital) – who together, look after £165 billion in assets – have co-signed a letter to the industry.
It outlines three urgent actions asset managers must take on net zero:
1. Improve ambition
Set a net zero commitment and ensure your targets are clear and transparent
2. Build action
Ensure that their approach is understood by their wider business and communicated to their clients
3. Increase influence
Strengthen links between their net zero commitments and stewardship activities to focus on outcomes
The letter says: “As managers of assets ourselves, we are aware of the complex implications of setting long-term net-zero commitments and interim targets on investments. Methodologies, timeframes and ambition all vary greatly across our industry – and different expectations from wealth managers like ourselves have historically complicated the landscape further.
“We would ideally like to see progress against these steps within the next 12 months, but understand that there may be challenges in doing so for some of our managers. We strongly welcome feedback and further discussion with you as we navigate this complex space together.”
Louisiana Salge, Head of Sustainability at EQ Investors, said: “As the world moves to a net zero carbon future, we are committed to playing our part in addressing climate change, both as a business and as stewards of our clients’ assets. EQ Investors is proud to be part of this important initiative and contribute to an industry-wide push to accelerate accountability and disclosure.”
The UK Wealth Managers on Climate initiative is open to all wealth management firms in the UK that share a commitment to a more sustainable future.
Members of the UK Wealth Managers on Climate group:
