Asset managers are not providing their audiences with the information they want when it comes to sustainable investing, a Peregrine Communications study has once again found.
Peregrine’s ESG Report 2022 said there is a “real disconnect” between the content asset managers are putting out and what their audiences are looking for. Nearly six in 10 (57%) of the 100 themes assessed this year are “over-indexed” by the market, meaning there is more content than organic demand.
“While managers have increased the amount of content they share, it is not always well matched to the interests of their audiences,” it said.
Specifically, the study said there is “significant demand” for investment firms to communicate how their commitments and activities relate to nature, particularly the clean energy transition.
“Our research highlights that more specific content on renewable energy themes is often under-indexed, with a particular lack of supply on themes including hydrogen, solar and hydroelectric power,” it said.
Covid-19 and COP26 were other areas where the report found a demand for content.
Unsurprisingly, it found the most effective communication from firms came from those with robust sustainability practices.
BNP Paribas and Robeco are most effective at communicating their ESG strategies, according to a Peregrine Communications study.
For example, it considered BNP Paribas and Robeco, which topped ShareAction’s rankings for investment firms with leading ESG practices last year, the most effective communicators.
Peregrine’s top five firms this year were: BNP Paribas, Robeco, Schroders, NN Investment Partners and Pictet.
“Firms that are bold, focused and authentic will continue to win out,” said Anthony Payne, CEO of Peregrine Communications.
The report also predicts: “Demand for greater distinction between asset managers who are making an ‘impact’ and those managing risks within an ESG framework is also likely to increase.”
