Dozens of major investors have been told that their ESG standards are not good enough for a revised code.
Schroders, State Street Global Advisors and JPMorgan Asset Management were among those who failed to meet the ESG standards of a new stewardship code, published today by the Financial Reporting Council, for those investing on behalf of savers and pensioners.
Signatories to the revised UK code, which sets standards for asset managers, pension schemes and insurers, have to explain how they are creating “long-term value for clients and beneficiaries leading to sustainable benefits for the economy”.
A third of the 189 companies with £32tn of assets under management that applied were not approved. Almost all of the applicants had previously been signatories.
Other prominent institutions rejected include Morgan Stanley Investment Management and Rothschild Wealth Management.
The 125 successful applicants, managing £20tn of assets in total, include Abrdn, Fidelity International, Hermes Fund Managers, JO Hambro Capital Management, LaSalle Investment Management and Legal & General Investment Management.
