Only a fraction of the world’s largest asset owners have made accredited net-zero commitments, according to a recent Willis Towers Watson study, signaling more headwinds ahead for the growth of green finance.
Just 14 out of the top 100 asset owners are accredited net zero committed organizations, according to the 2021 edition of «The Asset Owner 2021» which is authored by the Thinking Ahead Institute.
Amongst the top 20 asset owners, only three are accredited organizations.
«While the pledges from Glasgow Financial Alliance for Net Zero (GFANZ) organizations are critical, the largest asset owners hold the ‘keys to the castle’,» said co-founder of Thinking Ahead Institute Roger Urwin.
«This relatively small group of investors are right on the front line of the investment community’s fight to become net-zero, and their power is even more concentrated among the top 20, which are responsible for nearly US$13 trillion.»
APAC Dominance
The Asia Pacific accounted for 37 percent of the $23.5 trillion in total – a 15.7 percent year-on-year rise – representing the largest region amongst the top 100.
The Government Pension Investment Fund (GPIF) of Japan maintained its throne as the world's largest asset owner with $1.7 trillion in assets under management.
«Over $8.3 trillion is concentrated within the top 20 APAC asset owners, making it a hugely impactful sum of capital to be used for positive change,» said Jayne Bok, Asia head of investments at Willis Towers Watson.
«Leading APAC asset owners have the power to drive change in the investments industry and hold the keys and the pathways to net zero. By thinking about the investment ecosystem* as a whole, and collaborating across it, this group can have even greater impact than their large asset size implies.»
