ShareAction’s Point of No Returns 2025

Sam Mahtani discuses ShareAction’s Point of No Returns 20225 report in his LinkedIn post :

ShareAction’s Point of No Returns 2025 report benchmarks 76 of the world’s largest asset managers on responsible investment performance across four key themes: governance & stewardship, climate change, biodiversity, and social issues. There are definitely some interesting insights to takeaway from the report. Here is a summary:

Key Findings:
- Industry Progress Has Stalled: Only 10 out of 76 managers met more than half of ShareAction’s key standards. The four largest asset managers—BlackRock, Vanguard, Fidelity, and State Street—received grades of E or F, despite managing a third of total assets surveyed. Engagement disclosure and escalation tactics have regressed since 2023.
- Continued Investment in Harmful Industries: Fewer than half of managers restrict coal investments across most funds. Only 4 managers met the standard for restricting coal, oil, and gas. Less than one-third prohibit investment in controversial weapons like landmines and cluster munitions.
- Biodiversity Blind Spot: Biodiversity was the weakest-performing theme, with over half of managers failing to meet a single biodiversity standard. Many lack sector policies for energy and mining, despite their impact on biodiversity.
- Limited Application of ESG Policies: ESG policies often apply only to a minority of funds, and implementation is inconsistent. Human rights frameworks are widely cited but rarely influence investment decisions.
- Lack of Sector-Wide Willingness to Change: Engagement is common, but escalation is rare. Only one-third of managers take concrete action when companies fail to meet expectations, and voting performance and escalation policies lack time-bound triggers.

Top Performers:
1. Robeco (Netherlands)
2. APG Asset Management (Netherlands)
3. AXA Investment Managers (France)
4. Aviva Investors (UK)
5. SEB Asset Management (Sweden)

These firms demonstrated robust policies across all themes and are examples of leading practice.

Bottom Performers:
- BlackRock: Grade E, AUM Share 15%
- Vanguard: Grade F, AUM Share 6%
- Fidelity Investments: Grade F

Recommendations from ShareAction:
-Asset Managers: Apply ESG policies across all funds, not just ESG-labelled ones. Escalate engagement when progress stalls.
-Asset Owners & Consultants: Use this benchmark to assess and challenge managers.
-Policymakers: Strengthen regulatory frameworks to enforce responsible investment standards.