Fund managers are treating climate-related matters with increasing seriousness, but progress on diversity, equity and inclusion (DEI) is more sluggish, according to a survey conducted by impact investment platform, Snowball.
The survey – conducted as part of Snowball’s fourth Impact Report – shows responsibility for climate initiatives is often delegated to specific individuals or teams, with close oversight from senior executives, committees or boards to ensure accountability. However, although 92% of fund managers said they had a formal DEI policy in place, just 10% of senior team members came from minority groups and only 28% of senior leaders were women.
Some European managers noted GDPR regulations restrict them from collecting data on diversity characteristics beyond gender and nationality.
The results “highlight the need for fund managers to focus on measurable outcomes”, not just box-checking exercises when it comes to DEI – an issue that persists even at the quality end of the impact investment sector, according to Snowball.
Daniela Barone Soares (pictured), CEO at Snowball, added: “DEI isn’t a fashion – it’s a commercial imperative. Embracing diversity, equity and inclusion isn’t about making concessions, it’s about unlocking untapped potential, driving better decisions and gaining a competitive edge. Despite the present political backlash and even shifting policies, fund managers must see this moment as an opportunity to lead, not retreat. It’s not just where capital goes that matters, but who controls it.”
Managing accreditation
Fund managers across Snowball’s portfolio have committed to a wide range of initiatives. Some 23 managers representing 27 funds had collectively signed up to 42 standards and initiatives related to DEI, 19 related to net zero and 23 related to nature and biodiversity. However, a key finding was the lack of correlation between DEI initiatives and outcomes.
Also read: AGM ballots: An unlikely DEI battleground
For its part, Snowball said its impact framework emphasises tangible outcomes through maintaining open and regular dialogue with fund managers; publishing transparent impact surveys that examine culture, equity and systemic change; and evaluating mainstream benchmarks, incorporating only those that align with its impact goals.
Barone Soares continued: “It’s commendable that managers are engaging with industry standards and certification schemes, but the sheer volume of commitments can obscure what real success looks like.
“It’s crucial to focus not just on activities but on tangible outcomes. Through rigorous due diligence and meaningful conversations, we delve into intent, values, mission, and genuine behaviours. This allows us to clearly discern whether a manager is truly concerned about moving the dial on these topics.”
