Overview
In our 2020 Asset and wealth management revolution paper, The Power to shape the future, we examined how the US$127 trillion industry was in an ideal position to tackle inequality and drive the green transition. Since then, we've seen an unprecedented acceleration in the move towards environmental, social and governance–orientated (ESG-orientated) investments. As investor allocations to ESG funds increase, the industry now has an opportunity to be at the forefront of a burgeoning ESG revolution.
The ESG imperative
In this report, we highlight the results of a recent PwC global survey of asset managers and institutional investors. Our findings reveal an AWM industry in transition. For asset managers, our analysis of ten market-defining trends stresses the urgency of moving away from ESG-orientated investments and, instead, integrating ESG principles into the heart of their purpose, strategy and investment management processes.
We analyse evolving industry priorities and new stakeholder expectations, identifying ten market-defining trends that are shaping the ESG agenda in the AWM market. Based upon the survey findings, our wide-ranging work with AWM organisations and insights from our community of solvers, these trends show investor expectations of ESG have set the scene for a radical overhaul of how value is defined and delivered within the AWM industry.
Ten ways ESG is shaping the future
- ESG is replacing asset price increases as an engine of growth.
- Pursuing ESG is fundamental.
- The investible universe for ESG funds will open up.
- ESG has broadened objectives and fiduciary duties.
- Investors are pushing for new ESG products—but demand outstrips supply.
- To attract new investment, managers need to differentiate their products and demonstrate ESG performance.
- Investors say they want more regulation.
- A meaningful ESG strategy requires investment.
- E, S and G must be balanced as part of a just transition.
- Managers need a proactive risk-mitigation strategy for mislabelled products.
Adapting your business to ESG
The sharpened focus on actively supporting green transition will create opportunities for new and creative strategies. We offer four levers to help your organisation get up to speed:
- Step up strategic integration.
- Reconfigure your operating model.
- Develop and convey a compelling story.
- Focus on the G, as well as the E and the S.
Are you ESG-ready?
As you look to increase insight, strengthen governance, and deliver demonstrable value to keep pace with investor expectations, it’s also important to build ESG into your digital and workforce transformation. How quickly and effectively you embed and operationalise ESG will determine your ability to attract investment and talent, and deliver on your purpose and potential.
Contact us
Olwyn Alexander
Global Asset & Wealth Management Leader, Partner, PwC Ireland (Republic of)
Tel: +353 (0) 1 792 8719
Steven Libby
EMEA Asset and Wealth Management Leader, Partner, PwC Luxembourg
Tel: +352 49 48 48 2116
Allison Rosier
Global Asset and Wealth Management Tax Leader, Partner, PwC United States
Tel: +1 (646) 465 0474
Asset and Wealth Management Leader, Financial Services Partner, PwC United Kingdom
Tel: +44 (0) 7803 234274
Global Asset & Wealth Management Market Research Centre Leader, Partner, PwC Luxembourg
Tel: +352 49 48 48 2191
Contact us
Asset and Wealth Management Leader, Financial Services Partner, PwC United Kingdom
Tel: +44 (0) 7803 234274
Andrew O’Callaghan
Global Asset & Wealth Management Advisory Leader, Partner, PwC Ireland (Republic of)
Tel: +353 1 792 6247
Allison Rosier
Global Asset and Wealth Management Tax Leader, Partner, PwC United States
Tel: +1 (646) 465 0474
Elizabeth Stone
UK Asset and Wealth Management Leader, Partner, PwC United Kingdom
Tel: +44 (0) 207 804 9678
Asia-Pacific Asset & Wealth Management Leader, Partner, PwC Singapore
Tel: +65 6236 3708
Steven Libby
EMEA Asset and Wealth Management Leader, Partner, PwC Luxembourg
Tel: +352 49 48 48 2116