Asset and wealth management revolution 2022: Exponential expectations for ESG

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

  1. ESG is replacing asset price increases as an engine of growth.
  2. Pursuing ESG is fundamental.
  3. The investible universe for ESG funds will open up.
  4. ESG has broadened objectives and fiduciary duties.
  5. Investors are pushing for new ESG products—but demand outstrips supply.
  6. To attract new investment, managers need to differentiate their products and demonstrate ESG performance.
  7. Investors say they want more regulation.
  8. A meaningful ESG strategy requires investment.
  9. ES and G must be balanced as part of a just transition.
  10. 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

Olwyn Alexander

Global Asset and Wealth Management Leader, Partner, PwC Ireland (Republic of)

Tel: +353 (0) 1 792 8719

Steven Libby

Steven Libby

EMEA Asset and Wealth Management Leader, Partner, PwC Luxembourg

Tel: +352 49 48 48 2116

Allison  Rosier

Allison Rosier

Global Asset and Wealth Management Tax Leader, Partner, PwC United States

Tel: +1 (646) 465 0474

Joe Wiggins

Joe Wiggins

Asset and Wealth Management Alternatives Leader, PwC United States

Roland Kastoun

Roland Kastoun

Asset and Wealth Management Consulting Solutions Leader, PwC United States

Albertha Charles

Albertha Charles

Asset and Wealth Management Leader, Financial Services Partner, PwC United Kingdom

Tel: +44 (0) 7803 234274

Robert Mellor

Robert Mellor

Asset and Wealth Management, Partner, PwC United Kingdom

Dariush Yazdani

Dariush Yazdani

Partner, Global AWM Market Research Centre Leader, PwC Luxembourg

Tel: +352 49 48 48 2191

Required fields are marked with an asterisk(*)

By submitting your email address, you acknowledge that you have read the Privacy Statement and that you consent to our processing data in accordance with the Privacy Statement (including international transfers). If you change your mind at any time about wishing to receive the information from us, you can send us an email message using the Contact Us page.

Contact us

Olwyn Alexander

Global Asset and Wealth Management Leader, Partner, PwC Ireland (Republic of)

Tel: +353 (0) 1 792 8719

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

Peter Finnerty

Global Asset & Wealth Management, Assurance Leader

Tel: +1 (617) 530 4566

Bernadette Geis

Asset and Wealth Management Trust Solutions Leader, PwC United States

Elizabeth Stone

UK Asset and Wealth Management Leader, Partner, PwC United Kingdom

Tel: +44 (0) 207 804 9678

Justin Ong

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

Hide