Bridging the development finance gap at the upstream end of the investment chain
UNCTAD has been monitoring and ranking the world’s top asset owners, mainly pension and sovereign wealth funds, in terms of their sustainability integration and performance.
As the world’s largest asset owners with a relatively long investment horizon, public pension funds (PPFs) and sovereign wealth funds (SWFs) are in a unique position to effect changes in sustainability integration along the investment chain.
The UN scorecard tries to evaluate the sustainability integration performance of the world’s top 100 funds by AUM (70 PPFs, 30 SWFs), which own $22 trillion of assets under management (AUM).
In 2021, 47 funds published an ESG/sustainability report or reported significantly in their annual report, accounting for 36% of global PPF AUM and 23% of global SWF AUM.
More than half of these funds (53) do not report on sustainability integration, including funds from both developing and developed economies.
The regional distribution may point to the regulatory impact on reporting trends as well as corporate practices.