Only eight asset managers labelled ESG 'leaders' by Morningstar
The eight asset managers to earn a leader label were Affirmative Investment Management, Australian Ethical, Boston Trust Walden, Domini, Impax, Parnassus, Robeco and Stewart Investors.
The eight asset managers to earn a leader label were Affirmative Investment Management, Australian Ethical, Boston Trust Walden, Domini, Impax, Parnassus, Robeco and Stewart Investors.
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Morningstar noted that most of these began as responsible investment firms, but have not «rested on their laurels».
«They have been at the cutting edge of developing innovative frameworks to assess ESG risks as well as the impacts, both positive and negative, that companies and investments have on the environment and society at large,» said Morningstar's report.
Meanwhile, 21 of the firms assessed were described as ‘advanced', 48 as ‘basic' and 31 as ‘low'.
15 new firms were added to the annual coverage, with one, Domini, earning an inaugural rating of leader, and three firms, Federated Hermes, Northwest Ethical Investments and Melior, earning advanced ratings.
There was little movement among the previously rated firms, with four being upgraded: Wellington Management and Brown Advisory to advanced, and Franklin Templeton and BetaShares to basic.
However, one firm, UBS Asset Management, was downgraded from advanced to basic.
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Large asset managers such as abrdn, BlackRock, JP Morgan and Invesco all retained a basic level, while BNY Mellon, Fundsmith, PGIM and Vanguard received low ratings.
Firms at a low rating were described as «slower to adopt ESG policies and processes, doing so only
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