《普華永道（PwC）： 2022年資產和財富管理革命（英文版）（28頁）.pdf》由會員分享，可在線閱讀，更多相關《普華永道（PwC）： 2022年資產和財富管理革命（英文版）（28頁）.pdf（28頁珍藏版）》請在三個皮匠報告上搜索。

1、 and wealth management revolution 2022Exponentialexpectationsfor ESG2 PwC Asset and wealth management revolution 2022 Dear reader,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 ine

2、quality and drive the green transition.Since then,weve seen an unprecedented acceleration in the move towards environmental,social and governanceorientated(ESG-orientated)investments,especially in Europe.As investor allocations to ESG funds increase,the industry now has an opportunity to be at the f

3、orefront of a burgeoning ESG revolution.In this report,we highlight the results of a recent PwC global survey of asset managers and institutional investors.Our findings reveal an asset and wealth management(AWM)industry in transition.For asset managers,our analysis of ten market-defining trends stre

4、sses 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 also point to the need to reconfigure operating models to secure and retain mandates,and to create a compelling ESG s

5、tory and develop credible reporting to track and communicate progress against it.To reinforce and accelerate change,its also important to build ESG into digital and workforce transformation when developing insight,strengthening leadership and delivering demonstrable value for money.We hope this repo

6、rt and its actionable insights are useful to you.How quickly and effectively you make this leap will determine not only your ability to attract investors and talent but also how effectively you can deliver on your purpose and potential.Sincerely,Olwyn AlexanderGlobal Asset and Wealth Management Lead

7、er Partner,PwC Ireland02 Foreword 03 Introduction:The ESG imperative06 Ten ways ESG is shaping the future 18 Adapting your business to ESG25 Are you ESG-ready?26 Appendix:Projected client and product growth27 Get in touchForewordContentsAs ESG-orientated mandates fast become the defaultnot just in E

8、urope but also the USthe race is on to shift allocations and retrofit existing funds to keep pace with investor expectations.But as vital as the conversion efforts are,theyre only a stopgap.As our survey underlines,long-term survival and success depend on the ability of asset managers to prepare for

9、 the next big shakeup in the market by differentiating their strategy and delivering on their purpose.As the AWM industry and its investors emerge from the covid-19 pandemic with renewed purpose,ESG funds have moved from the margins and into the mainstream.One of the most striking findings from our

10、worldwide survey of 250 institutional investors and 250 asset managers,representing nearly half of global assets under management(AuM),is the exponential rate at which this transformation is taking place,as established markets grow and new markets come on stream.The US,which is the largest AWM marke

11、t(US$67 trillion in AuM at the end of 2021),had been thought to trail behind Europe in attitudes towards ESG.But our survey found that 81%of institutional investors in the US plan to increase their allocations to ESG products over the next two years,almost on par with Europe(83.6%).Under our base-ca

12、se growth projection scenario,ESG AuM in the US would more than double,from US$4.5 trillion in 2021 to US$10.5 trillion in 2026.Spurred on by recent landmark legislation that commits US$390 billion to fight climate change,the overall direction of travel among US investors is clear,even if the comple

13、xion of administrations changes and some state governments continue to push back on ESG.Other global regions arent far behind.Asia-Pacific is projected to have the fastest growth in ESG AuM in percentage terms,albeit while starting from a much lower base than Europe or the US.AuM in Asia-Pacific wil

14、l more than triple to US$3.3 trillion in 2026.ESG investment products in the Middle East and Africa are also gaining market share from their base in well-established Shariah-compliant funds,though such growth in these regions is much smaller in absolute Introduction:The ESG imperative3 PwC Asset and

15、 wealth management revolution 2022 4 PwC Asset and wealth management revolution 2022 terms.And in Latin America,where ESG products now account for US$25 billion in AuM,investor interest is also growing.Simply put,ESG-orientated AuM is set to grow much faster than the AWM market as a whole.In our bas

16、e-case scenario,the share of ESG assets over total AuM would increase from 14.4%in 2021 to 21.5%in 2026,comprising more than one-fifth of all assets(see Growth in ESG investments will outpace the industry as a whole).Although the current growth is derived largely from retrofitted fundsat the end of

17、2021,27%of funds in Europe had been repurposed to integrate ESG factorswe believe that new funds will be set up,raising new capital.Growth in ESG investments will outpace the industry as a wholeGlobal ESG AuM(US$tn)Global ESG AuM by region(US$tn)Source:PwC Global ESG and AWM Market Research Centre a

18、nalysis,Lipper,Preqin,ESG Global01020304050602026Best2026Base2026Low2021202020155.8%12.9%5.8%12.9%20.9%20.9%28.7%17.3%21.5%KeyCAGR42.7%42.7%0.0 4.8 10.4 12.8 16.9 22.41.6 3.6 6.9 10.1 14.3 20.70.6 1.0 1.1 1.6 2.7 4.52.2 9.4 18.4 24.4 33.9 47.6Forecast01020304050602026Best2026Base2026Low2021202020155

19、.8%12.9%5.8%12.9%20.9%20.9%28.7%17.3%21.5%KeyCAGR42.7%42.7%of ESG%of ESG0.2 0.7 1.0 2.1 3.3 5.01.1 4.7 12.8 14.3 19.6 25.70.0 0.0 0.0 0.1 0.2 0.30.0 0.1 0.1 0.2 0.3 0.40.8 3.8 4.5 7.7 10.5 16.32.29.418.424.433.947.6ForecastMandatesMutual fundsPrivate marketsTotalAsia-PacificEuropeLatin AmericaMiddle

20、 East&AfricaNorth AmericaTotal 5 PwC Asset and wealth management revolution 2022 The upside of setting up a new ESG fund is the opportunity to drive growth and meet investor demands as they evolve and become more targeted.A majority of investors(60%)report that ESG has already resulted in higher yie

21、lds in their investment performance,compared with non-ESG equivalents.And more than three-quarters of investors would be willing to pay higher fees for ESG funds.However,there has been little sign that higher fees are being applied to retrofitted funds so far,despite higher compliance costs for asse

22、t managers.Data challenges for both new and converted ESG funds are well-known.These challenges are compounded by a continuing lack of clarity or consensus over what regulators and investors deem to be green and socially inclusive.The rising bar for ESG expectations,though less well-charted,is just

23、as big a challenge.In the EU,for example,to comply with regulations,its no longer enough to disclose and explain principal adverse impacts(PAIs)related to ESG factors such as carbon footprint,greenhouse gas emissions,anti-corruption measures and modern slavery.Firms are now expected to mitigate and

24、address the PAIs and the issues underlying them.The EU is more prescriptive on ESG than the principles-based approach taken by the US Securities and Exchange Commission.But on both sides of the Atlantic,the shift to a more tightly regulated ESG marketplace is decreasing the range of securities that

25、are sufficiently ESG-friendly to choose from.However,we expect the investible universe to start expanding again as more and more businesses across different sectors embrace ESG in their strategy and operations.The other big issue is timing.In particular,the impact of the war in Ukraine on energy sup

26、ply,security and prices has raised questions among some investors,asset managers and portfolio companies over whether their green transition may need to be altered in the short termalthough the longer-term intentions for ESG allocations are clear from our survey.Opportunities aheadGiven that ESG is

27、growing rapidlyand is projected to continue to do sowe believe that the market will open up over the next three to five years and present front-runners with significant opportunities and challenges.The catalyst will be the broadening of ESG classification as investors and regulators focus more close

28、ly on supporting businesses that are undergoing green transitions.ESG-designated funds will no longer be restricted to a narrow taxonomy of fully sustainable and inclusive assets but could also invest in a much wider array of businesses to help reshape production techniques and to develop clean and

29、green models.In turn,more businesses will be moving along this ESG path.These market developments offer a sweet spot for the AWM industry.Asset managers have a once-in-a-generation opportunity to drive innovation and win new mandates through the compelling appeal of their ESG story and ability to de

30、liver on their promise.As the following ten trends show,ESG represents an area of growth for the industry.At the same time,it introduces new challenges to the traditional ways of doing business.There is also a significant gulf between what investors want and what asset managers are doing in response

31、.Those who get the transition right by rethinking their strategy will create a virtuous circle of purpose and opportunity,yielding sustainable growth.Our survey highlights a surge in demand for ESG funds that exceeds almost all previous expectations.Here we list the ten key market trends,industry pr

32、iorities and stakeholder expectations that are helping to shape the ESG agenda in the AWM market.Ten ways ESG is shaping the future6 PwC Asset and wealth management revolution 2022 7 PwC Asset and wealth management revolution 2022 ESG is replacing asset price increases as an engine of growth1Strong

33、AWM market growth over the past ten years has been driven by rises in both asset prices and flows.Now,ESG is poised to become a key market driver,as gathering economic headwinds threaten the traditional growth engines in the industry.These changes underline the importance for asset managers and inst

34、itutional investors alike to understand how to capture the shift to ESG as a counterbalance to potential portfolio underperformance.ESG-orientated funds are set to grow much faster than the market as a whole(at a base-case CAGR of 12.9%),and,as headwinds persist,are rapidly becoming one of the go-to

35、 assets for differentiation.With ESG AuM under this scenario set to reach US$33.9 trillion by 2026,the ESG share of overall AuM would increase from 14.4%in 2021 to more than one-fifth of all assets(21.5%)by 2026.Even in the low-case scenario,the CAGR would be 5.8%much higher than the growth estimate

36、s for the wider industry over the same time frame.Our base-case estimates for total global AuM reflect the covid-related spike in inflation that has pushed central banks across the globe to tighten monetary policy.The scenario allows for a capital market contraction of 20 to 30%between 2022 and 2023

37、,followed by a recovery from 2024 onwards.Under this scenario,the 8.9%compound annual growth rate(CAGR)in AuM achieved between 2016 and 2021 would slip to 4.3%between now and 2026.However,our low-case estimate shows a significantly slower growth in overall AuM,slightly above 2%CAGR until 2026 and re

38、aching US$141.1 trillion,driven by further hikes in interest rates to mid-2023.Under this scenario,these enduring high inflationary pressures would continue in the coming months and years as the war in Ukraine and supply chain bottlenecks persist,leading to heightened protectionism and a fractured g

39、lobal landscape.This would result in stagflation and a more pronounced asset price correction,leading,in turn,to a further downturn of revenues,profits and overall AuM within AWM.For further market analysis,refer to the appendix on page 26:Projected client and product growth.8 PwC Asset and wealth m

40、anagement revolution 2022 Growth models for an industry in transitionGlobal AuM(US$tn)Investments in North America and Europe could double between 2015 and 2026Global AuM by region(US$tn)8.9%KeyCAGR%of ESGKeyCAGR%of ESG8.9%2.1%2.1%4.3%5.4%2.1%2.1%2.1%4.3%5.4%MandatesAsia-Pacific34.847.150.110.620.02

41、2.026.729.831.32015202020212026 Low2026Base2026 Best2015202020212026 Low2026Base2026 Best20.532.134.837.240.843.22.52.62.73.33.73.90.60.91.01.21.31.442.160.367.072.781.586.176.3115.8127.5141.1157.2165.956.859.862.931.753.660.965.276.280.69.815.116.419.121.222.376.3115.8127.5141.1157.2165.9Mutual fun

42、dsEuropeAlternativesLatin AmericaMiddle East&AfricaNorth AmericaTotalTotalForecastForecastSource:PwC Global ESG and AWM Market Research Centre analysis,Lipper,Preqin,ESG GlobalSource:PwC Global ESG and AWM Market Research Centre analysis,Lipper,Preqin,ESG Global28.7%21.5%17.3%14.4%8.1%2.9%28.7%21.5%

43、17.3%14.4%8.1%2.9%200150100500200150100500ESG is far more than just a compliance exercise.Our survey highlights the emergence of a new breed of institutional investor.Nearly eight in ten institutional investors(79%)plan to increase their allocations to ESG products over the next two years.Whats more

44、,nearly nine in ten have either already rejected or stopped investing with a specific asset manager(39%)or would consider doing so(50%)due to shortcomings in the managers ESG investment strategies.And it isnt just investors who are driving change.PwC research into ESG sentiment highlights the extent

45、 to which both consumers and employees expect organisations to share their own values.The immediate priority for the asset managers in our survey(76%),therefore,is to convert existing products so that they can be labelled as ESG-orientated.The adjustments could focus either on complying with Sustain

46、able Finance Disclosure Regulation(SFDR)Articles 8 and 9 in the EU or on de facto alignment with stakeholder expectations elsewhere.Given the proportion of investors who are increasing their allocations to ESG funds,retrofitting is the minimum that asset managers need to do to stay in the game.Thoug

47、h conversion costs less than launching a new ESG fund,it still brings many of the same challenges.Data gaps are easing,but they continue to be prevalent enough to force many managers to rely on estimates and even guesstimates.At the very least,these approximations and their impact need to be fully d

48、isclosed and explained.The challenges are heightened by grey areas in taxonomies of what is and isnt sustainable and inclusive.In the EU,the regulatory bar for green designation has been raised still further by the move to a duty of care on addressing adverse impact.Pursuing ESG is fundamental2ESG i

49、s a dealbreaker for many investorsQ:Have you as an institutional investor rejected or stopped investing with an asset manager due to shortcomings in their corporate ESG efforts or ESG investment strategies?Source:PwC Global ESG and AWM Market Research Centre analysis,ESG GlobalCorporate ESG effortsE

50、SG investment strategies44%Yes42%No,but would consider doing so39%Yes50%No,but would consider doing so14%11%No,and wouldntconsider doing soNo,and wouldntconsider doing so9 PwC Asset and wealth management revolution 2022 10 PwC Asset and wealth management revolution 2022 The investible universe for E

51、SG funds will open up3More than seven in ten institutional investors(72%)assess their asset managers ESG investment strategies before deciding where to allocate funds.Right now,however,the number of securities that could be classed as unquestionably sustainable,and hence included with an ESG-orienta

52、ted fund,is limited.If we look at the SFDR criteria,the range of investments and activities that would qualify for Article 9 status,in which the objective of the financial product is geared primarily to an E,S or G impact,is especially few and far between.This makes it hard for asset managers to set

53、 their funds apart from competitors.But the investible universe and opportunities for differentiation will increase.New legislation,public market activity and government investment in longer-term sustainability goals are gaining momentum just as more businesses in different sectors embrace their own

54、 transition to ESG.This trend towards a more investible ESG landscape includes investing in companies that arent sustainable now,and then helping them with the finance and expertise needed to incorporate positive ESG outcomes into their operations.Asset managers have the opportunity to take an activ

55、ely interventionist approach.This next phase of evolution in ESG is evident in the work of the EUs Technical Expert Group on sustainable finance,which could set the direction for developments elsewhere.11 PwC Asset and wealth management revolution 2022 ESG has broadened objectives and fiduciary duti

56、es4Market observers have pointed to the potential tensions between ESG investment priorities and asset managers fiduciary duty to maximise financial returns for investors.Previous PwC research has shown that some asset managers arent prepared to compromise financial returns for ESG credentials.In th

57、at prior PwC study,more than 80%of self-described active asset managers were either unwilling to accept a reduction in returns or would agree only to a drop of 100 basis points(bps)or less.But the tide is clearly turning.Three-quarters of institutional investors in our survey believe that ESG is now

58、 part of their fiduciary duty.Nearly as many(72%)set ESG-related goals for their asset managers at a portfolio level,though whether this overrides financial return would vary.The winners will be marked out by their ability to deliver on both fronts.As to whether financial and ESG performance might c

59、onflict,nine in ten asset managers are convinced that integrating ESG into their investment strategy will improve overall returns in the long term.Six in ten institutional investors are already recording higher yields on their ESG investments compared with non-ESG investments(see Investors are repor

60、ting higher yields on ESG investments).More than half noted that ESG integration had taken less than three years to deliver higher returns.Investors are reporting higher yields on ESG productsQ:In your experience,what impact has ESG integration had on your investment performance?(ESG investments hav

61、e yielded _ returns in comparison to their non-ESG equivalents.)Source:PwC Market Research Centre analysis,Lipper,Preqin12.4%Significantly higherSimilarSlightly lowerSignificantly lowerSlightly higher25.6%12.0%2.4%47.6%Net positive 60%Net negative 14.4%12 PwC Asset and wealth management revolution 2

62、022 Investors are pushing for new ESG productsbut demand outstrips supply5Nearly nine in ten institutional investors(88%)believe that asset managers should be more proactive in developing new ESG products.However,fewer than half of managers(45%)are planning to launch new ESG funds.If we look at the

63、EU,for instance,our analysis shows that of the 8,017 funds classified as environmentally and socially promoting(Article 8)by the end of Q2 2022,only 989 were new and the rest were reclassified.Of the 1,061 classified as products targeting sustainable investments(Article 9),only 286 were new and the

64、rest reclassified.This expectation gap opens up opportunities.By accelerating new product development and actively supporting green transition,early movers would sharpen innovation,boost relevance and seize market share.Innovation lags enthusiasm in the creation of ESG-compliant fundsQ:Looking into

65、the future,your firm will predominantly.retrofit or adjust products to become ESG-compliant.launch a new suite of ESG products.Percent of respondentsSource:PwC Global ESG and AWM Market Research CentreWorldEuropeNorth AmericaAsia-PacificOther regions76%75%79%68%79%45%57%39%64%33%13 PwC Asset and wea

66、lth management revolution 2022 To attract new investment,managers will need to differentiate their products and demonstrate ESG performance6More than three-quarters of investors are willing to pay higher fees(78%)for ESG funds57%would accept 20 to 40 bps,equal to a 0.2 to 0.4%increase in fees.Nearly

67、 eight in ten asset managers(79%)would consider charging higher fees for their ESG offerings(an average of 35 bps higher).But even if asset managers do seek to charge higher fees to cover some of their additional costs,the question is how sustainable such a premium would be in the long term.This unc

68、ertainty underlines the need to focus on product differentiation and value for money.Our survey results revealed a potential appetite to build ESG into performance-related fees.More than half(52%)of investors would be willing to link compensation to ESG performance.Two-thirds of these would accept a

69、 3 to 5%ESG premium.But far fewer are prepared to pay the 5%-plus fees envisaged by some asset managers.In turn,more than half of asset managers(57%)are looking into the possibility of charging performance fees.Most managers(60%)believe an ESG performance consideration of 3 to 5%would be acceptable.

70、Notably,however,weve not yet observed any ESG performance fees being charged.Moreover,any performance fees would require the development of clear and credible impact measurement to justify them.This is possible,though it may increase data collection and reporting costs and hence eat into any additio

71、nal revenues.Investors show a willingness to accept ESG performance feesHow much are they willing to pay/charge?Source:PwC Global ESG and AWM Market Research Centre,ESG Global52.0%56.8%Institutional investors willing to accept an ESG performance fee Asset managers considering charging an ESG perform

72、ance fee25%67%8%0%0%15%60%24%1%1%20%14 PwC Asset and wealth management revolution 2022 Investors say they want more regulation7Both asset managers and institutional investors see regulation as the main obstacle to ESG growth.Concerns over regulation arent surprising.It can be costly,complex and inco

73、nsistent.The demands can also draw resources away from much-needed strategic planning and product development.Nonetheless,institutional investors believe that regulation is an important driver for integrating ESG into asset managers investment strategies.Precise and transparent regulation can act as

74、 an important lever to build trust and decrease the risk of mislabelling.They also believe regulatory standards provide a useful basis for due diligence on asset managers investment strategies.More than seven in ten(71%)are therefore in favour of strengthening ESG regulatory requirements for asset m

75、anagers.Source:PwC Global AWM Research CentreNorth AmericaDebates regarding the SECs shift from materiality-based to more prescriptive ESG disclosure approaches are underway.The Biden Administrations strong ESG agenda is evident in the largest climate spending package in US history.Latin AmericaChil

76、ean and Mexican authorities have recently enforced regulations regarding ESG risk disclosure and reporting for pension funds.Although those represent an important regulatory step,further progress is needed to promote a deeper entrenchment of ESG considerations in the broader AWM space.EuropeRecent y

77、ears have seen the fundamental transformation of Europes regulatory structure through the implementation of a number of binding ESG-related regulations.This regulatory and legislative momentum has been highly conducive to the regions ESG market growth and promises to bring in a new era of investment

78、.Asia-PacificHong Kong and Singapore lead the Asia-Pacific region,with financial regulatory authorities steering the industry towards stronger ESG risk and reporting practices.Proposals involving the development of an ASEAN taxonomy should bring important progress should they materialise.In Oceania,

79、New Zealand has emerged as a first mover,being the first country to mandate climate-related disclosures.WorldwideImportant movements towards the development of international ESG sustainability reporting standards are currently in place,with the International Financial Reporting Standards Sustainabil

80、ity Standards Board being one of the most ambitious current initiatives.ESG regulation and standards are gaining momentum globally15 PwC Asset and wealth management revolution 2022 A meaningful ESG strategy requires investment8An ESG strategy requires a significant shift in governance and corporate

81、practices.It also increases the need for employees with ESG and reporting expertise.It could thus raise near-term costs for asset managers.Our survey finds that regulatory and compliance costs have increased by more than 10%.This development favours large asset managers with the scale and resources

82、to absorb these extra demands and spread the costs.For others,it creates a barrier to entry or puts further pressure on an already squeezed middle.Compliance costs are growingSource:PwC Global ESG and AWM Market Research Centre,ESG GlobalIncrease in regulatory compliance costs due to ESGNorth Americ

83、a10.2%Europe12.8%Other regions10.3%Asia-Pacific12.1%World11.1%16 PwC Asset and wealth management revolution 2022 E,S and G must be balanced as part of a just transition9There is still opposition to ESG among some policy-makers and regulators,who believe that asset managers should not broaden their o

84、bjectives beyond financial return.Curbs on ESG-focused investment can already be seen in some jurisdictions,such as the US states of Texas and Florida.However,any change in policy would need to be weighed against the pro-ESG attitudes among investors that we have noted in our survey.Even some stakeh

85、olders who recognise the importance of action on climate change are worried about the impact of an accelerated green transition on energy security and the jobs that depend on it.These concerns have been heightened by the spike in energy prices in the wake of the war in Ukraine and the resulting impa

86、ct on business costs and consumer prices.As a result,some investors,asset managers,portfolio companies and policy-makers have begun to draw distinctions between their short-term and long-term strategies for ESG.The shift in sentiment is reflected in the inclusion of nuclear power and natural gas in

87、the EU Taxonomy and the increased allocation of oil and gas companies within a number of asset managers portfolios while,at the same time,these asset managers also work with energy providers to build efforts around a longer-term transition.17 PwC Asset and wealth management revolution 2022 Managers

88、need a proactive risk-mitigation strategy for mislabelled products10More than seven in ten institutional investors(71%)and more than eight in ten asset managers(86%)believe that mislabelling is prevalent in the AWM industry.The risks are heightened by the pace at which new regulations are coming on

89、stream and uncertainty over the ESG designations within them.One example of this uncertainty is the continuing debates over which investments are included in the EU Taxonomy.Mislabelling is rarely intentional,however.More often than not it stems from the lack of clarity in regulatory classifications

90、,insufficient consistency in data standards and poor information coming from portfolio companies.It can also be rooted in silos and inconsistencies within the organisationmarketing or reporting teams not communicating closely enough with fund managers,for example.If slip-ups do occur,its important t

91、o be able to quickly explain why,and to correct and learn from the mistakes.Delays or lack of transparency can only heighten the reputational damage and risk of regulatory sanction.As the preceding trends show,investor expectations of ESG commitments have set the scene for a radical overhaul in how

92、value is defined and delivered in the AWM industry,from mandate selection to how fund performance is judged.The focus on actively supporting green transition will add further impetus to this shakeup,creating opportunities for new and creative strategies but also increasing competition to attract and

93、 sustain mandates.How can your organisation get up to speed?Drawing on the survey findings and our wide-ranging work with AWM organisations,weve identified four actionsstepping up strategic integration,reconfiguring your operating model,storytelling and focusing on governancethat are becoming increa

94、singly urgent.1.Step up strategic integration The faster and more effectively you can build ESG into the heart of your strategy and capabilities,the better your ability to meet investor expectations and attract new mandates.Some asset managers will be ESG opportunists,responding to changing stakehol

95、der expectations and looking for quick wins.But there are opportunities to adopt a more strategic approach by anticipating stakeholder demands,developing a new generation of ESG funds,and moving to the forefront of social and environmental change.Examples include supporting investment in green trans

96、ition and infrastructure with the development of leading-edge expertise in these areas.Adapting your business to ESG 18 PwC Asset and wealth management revolution 2022 19 PwC Asset and wealth management revolution 2022 The speed at which stakeholder expectations are changing means that ESG strategie

97、s can often be piecemeal and reactivemodifying specific products to meet regulatory designations,for example.Taking the initiative and realising the full potential of ESG demands a clear vision of what your business stands for,a plan for change,and a durable framework for governance,accountability a

98、nd reporting to make sure that what is being promised is delivered.Practical steps In setting near-term objectives,its important to talk to employees,investors and other key stakeholders to find out what they want from your strategy and reporting.In developing the plan,materiality analysis can help

99、to identify the issues and opportunities that are most likely to have an impact on you,your investors and other key stakeholders.Consider the client journey with ESG as a starting pointawareness,engagement,servicing,and upselling or cross-sellingto build up credibility and service offerings.Homing i

100、n on what matters most would also allow you to align your ESG goals with your corporate strategy,stakeholder expectations and organisational strengths in the most targeted and realisable way.Your CEO and leadership team should own the shift in strategy and set the tone for the change in behaviour an

101、d alignment between ESG and wider objectives.Without this high-level direction and intent,business units may just carry on as before or see ESG as a compliance exercise with little relevance to their day-to-day activities and decisions.20 PwC Asset and wealth management revolution 2022 To secure org

102、anisational buy-in and build momentum,the initial focus should be the most effective and easy-to-implement actions.Areas where the impact is high but implementation is relatively straightforward include the establishment of an ESG investment committee(see Expectation gap:Exerting influence).As the c

103、urrent issues surrounding energy supply and security attest,there will be shifts in sentiment and short-term priorities.Expectations will also keep evolving,so ESG integration isnt going to be a one-off exercise.The integration frameworks developed by the UN Principles for Responsible Investment and

104、 the CFA Institute can provide a reference point for integration and help you to compare your business against those of your peers.Expectation gap:Exerting influence All the asset managers in our survey incorporate ESG into their investment approach to at least some extent.However,fewer than half(46

105、%)have an ESG investment committee,and not all of these have veto rights over investments.Clearly,an ESG committee is not the only way to strengthen ESG influence and governance.ESG could be included in the investment committee agenda or built into portfolio management services as a red flag,for exa

106、mple.But an ESG committee offers one of the most effective ways to make sure that ESG is considered at a portfolio level and is therefore a reasonable yardstick for the level of focus and action ahead.21 PwC Asset and wealth management revolution 2022 2.Reconfigure your operating modelESG touches on

107、 virtually every aspect of your operating model.Key priorities include setting investment selection and performance criteria that are consistent with your ESG agenda.You would then need to identify,source and analyse the data that would be required to meet these criteria,while also delivering value

108、for money.Though the availability and deployment of ESG data is on the rise,the data still lacks sufficient breadth and consistency.This can hamper investment decisions and make it difficult to compare sectors and securities.It also makes it harder to demonstrate ESG performance and to align product

109、s and services with the expectations of investors and regulators.These data deficiencies are the most serious constraint to the greater adoption of ESG in the AWM industry,and they are likely to intensify as upcoming regulations call for new datasets and processes.As a result,asset managers must add

110、ress the shortcomings in their data management processes.This would not only help them to deal with regulatory requirements,but also to capitalise on the opportunities opened up by the surge in client demand for sustainable investing.Practical stepsAdoption of the latest technology holds the key to

111、overcoming the ESG data and reporting challenges.If properly implemented and integrated,new technologies could soon redefine the industry,helping you as an asset manager to fully incorporate ESG considerations into your investment process and enabling you to develop a highly differentiated,sustainab

112、le value-creation offering.There are also opportunities to digitise the data coming from portfolio companies to help you assess their ESG-related risks and advise on ways to address them.22 PwC Asset and wealth management revolution 2022 Clearly,this will require investment.The scale and cost of rep

113、orting is likely to spur an acceleration in the outsourcing of reporting.Compliance would in turn be increasingly delivered as a managed service.The ESG criteria that you set for the businesses in your portfolio should be consistent with how you manage your business internally.Reducing the carbon fo

114、otprint of your operations in areas such as switching to renewable energy is reasonably straightforward.The harder,but equally critical,challenge is making demonstrable progress on diversity and inclusion.If they are business imperatives,they should be treated as such,from building them into busines

115、s strategy to full and candid disclosure.Are disclosures sufficiently trusted and transparent?More than one-third of investors(38%)believe that the lack of data from asset managers represents a challenge when investing in or considering ESG products.Nearly two-thirds of asset managers(64%)believe th

116、at data challenges are one of the main obstacles when adopting or considering ESG investments.23 PwC Asset and wealth management revolution 2022 3.Develop and convey a compelling story Determining what you stand for and how to deliver on your commitments can form the basis for a clear and compelling

117、 ESG story.This is about building trust at a time when its more fragile and harder to earn than ever.Practical stepsThe starting point is a realistic set of goals.For example,saying you intend to be net zero in five years time may sound compelling,but may be difficult to deliver in practice.It may b

118、e better to focus on what youre actually doing on the ground within your portfolio and your operations,and how its making a demonstrable difference.The other key priority is the quality and reliability of information to support decision-making and credible reporting.Its important to recognise that w

119、hat is considered sustainable today may change over time.This evolving landscape underlines the need to document the reasoning behind decisions to ensure that the rationale can stand up to scrutiny further down the line.Good information is the key foundation for performance against objectives and va

120、lue for money.With most key performance indicators(KPIs)focused on sustainability,priorities include broadening measurement and reporting in areas such as social impact and diversity and inclusion.Reporting should be consistent and joined up.This will require close collaboration and systems integrat

121、ion between investment evaluation,regulatory reporting and investor relations teams.It helps to question practices:is the messaging consistent?Does the data support it?It will take time to get measurement up to speed.The current inefficiencies in quantitative data also reinforce the importance of se

122、tting out a clear vision and reporting on progress against it in enriched qualitative disclosures.Fuller explanation doesnt just help to bridge any gaps in the numbers;it also helps to justify strategies that have positive objectives but that could come across negatively in the reported data.A clear

123、 case in point is explaining why financing is still going to companies with high emissions now and how you are helping those companies to move onto a sustainable footing.Reporting mattersInvestor expectations for asset manager disclosureLevels at which investors require reporting from asset managers

124、Portfolio levelEnvironmental KPIsI currently requireI plan on requiringI do not require.Manager levelUnderlying portfolio company levelDo not requireDimensions investors currently require in ESG reporting(Excluding regulatory requirements)30.4%46.8%59.2%76.0%6%14.4%11.2%23.6%17.2%24.0%41.2%42.8%0.8%

125、24.8%57.6%68.0%Source:PwC Global ESG and AWM Market Research CentreNote:Sums may not total 100 due to rounding.Governance KPIsSocial KPIsInformation on exposure to climate risks2040608010024 PwC Asset and wealth management revolution 2022 4.Focus on the G,as well as the E and the SGovernancethe G in

126、 ESGdoesnt always get as much public attention as the E or the S,but its just as critical and growing in focus.Effective governance can help to align corporate commitments on ESG with frontline business decisions and operations.Amid the backlash against greenwashing and social washing,governance is

127、also a key foundation for credible disclosure.Practical stepsIf the foundation is building ESG into strategy,the key priorities from a governance perspective are clear lines of accountability and the management information to deliver timely and effective oversight.Its also important to build ESG int

128、o performance objectives and rewards alongside financial measures.Additional priorities include developing a clear understanding of new and emerging risks.Boards should take the lead in setting the risk appetite and putting in place the necessary lines of reporting and accountability.At a portfolio

129、level,its important to make sure that material risk exposures for specific investments are identified,assessed and tracked.More than half(56%)of institutional investors and 76%of asset managers are in favour of strengthening ESG disclosure rules for listed companies.ESG breakdown The changing balanc

130、e between environmental,social and governance priorities Current and future most prevalent ESG aspects in institutional investors investments(%)Future most prevalent ESG aspects in asset managers launching of new products(%)As of today Next 24 monthsSource:PwC Global ESG and AWM Market Research Cent

131、reEnvironmentalEnvironmentalSocialSocialGovernanceGovernanceAll equally weightedAll equally weighted44%42%21%22%17%27%18%9%42%18%17%23%25 PwC Asset and wealth management revolution 2022 How quickly and effectively you embrace,embed and operationalise ESG will determine not only your ability to attra

132、ct investment and employees but also how well you can deliver on your purpose and potential.To help,weve developed ten key considerations to jump-start your thinking and set your business up to thrive in todays ESG-orientated marketplace.Are you ESG-ready?Ten strategic considerations1 How quickly ca

133、n you shift allocations and convert existing ESG products to stay in the game in the short term?2 How quickly can you shift from retrofitting to strategic reorientation and the launch of new ESG products to meet growing demand from investors?3 How can you best develop and articulate your ESG story t

134、o make sure investors understand and align with your ambitions?4 How can you sufficiently differentiate ESG products and performance to sustain investment and justify higher fees in the long term?5 How can you improve efficiency and cut operating expenses to help capture growing ESG demand,offset in

135、creased costs and sustain margins?6 How can you sustain credibility by making sure your own ESG policies,operations and performance match what you expect from portfolio companies?7 How can you boost credibility and sharpen market differentiation by developing a strong data and reporting strategy,eva

136、luating your own data collection and analysis,or enlisting a third-party provider?8 What system upgrades do you need to source and analyse ESG data effectively?9 How can you establish the assurance of the ESG data and analysis to guard against the risk of ESG mislabelling?10 How can you respond quic

137、kly and decisively to possible claims of mislabelling or greenwashing by explaining how the mistakes were made,fully correcting them and learning from them?We would love the opportunity to discuss our findings with you in more detail as you work to integrate ESG into your business.26 PwC Asset and w

138、ealth management revolution 2022 Appendix:Projected client and product growthThe growth of alternative and passive investments is expected to accelerate Products 20122015202020212026 low estimate2026 base estimate2026 best estimateCAGR low estimateCAGR base estimateCAGR best estimateGlobal AuM63.876

139、.3115.8127.5141.1157.2165.92.1%4.3%5.4%Mutual funds26.931.753.660.965.276.280.61.3%4.6%5.7%of which active investments23.625.939.443.343.350.653.60.0%3.2%4.3%of which passive investments3.45.814.217.621.825.527.04.4%7.7%8.9%Mandates30.434.847.150.156.859.862.92.5%3.6%4.7%of which active investments2

140、6.528.434.734.836.538.540.51.0%2.0%3.1%of which passive investments3.96.412.415.420.321.422.55.7%6.8%7.9%Alternatives6.49.815.116.419.121.222.33.1%5.3%6.4%Note:Totals may not equal sums due to rounding.Source:PwC Global ESG and AWM Market Research Centre,Lipper,Preqin(Values are expressed in US$tril

141、lion.)Among client assets,pensions and sovereign wealth funds are expected to see the strongest growthClients201220152017201920202026 base estimate202026 CAGR estimatePension assets35.239.847.251.656.276.55.3%Insurance companies24.127.130.531.133.243.34.5%Sovereign wealth funds5.27.47.88.79.913.35.1

142、%High net-worth individuals46.562.870.284.6104.1128.63.6%Mass affluent49.754.160.074.888.5107.03.2%Total client assets160.8191.2215.7250.8291.8368.74.0%Total AuM63.978.797.6106.8115.3157.24.3%Penetration rate39.7%41.2%45.3%42.6%39.5%42.6%Note:Totals may not equal sums due to rounding.Source:PwC Glob

143、al ESG and AWM Market Research Centre,OECD,Lipper,Pension Fund and Insurance Associations(Values are expressed in US$trillion.)27 PwC Asset and wealth management revolution 2022 Get in touchOlwyn AlexanderGlobal Asset and Wealth Management LeaderPartner,PwC IAlbertha CharlesUK Asset and Wealth Manag

144、ement LeaderPartner,PwC UKRoland KastounUS Asset and Wealth Management Consulting Solutions LeaderPrincipal,PwC USSteven LibbyEMEA Asset and Wealth Management LeaderPartner,PwC LRobert MellorPartner,PwC UKAndy OCallaghanGlobal Asset and Wealth Management Advisory Leader Partner,PwC Ireland Kevin OCo

145、nnellGlobal Asset and Wealth Management ESG Leader Partner,PwC US Justin OngAsia-Pacific Asset and Wealth Management Leader Partner,PwC Singapore Seth PromiselUS Asset and Wealth Management Partner,PwC USAllison RosierGlobal Asset and Wealth Management Tax LeaderPrincipal,PwC USElizabeth StoneEMEA A

146、sset and Wealth Management ESG LeaderPartner,PwC UK Joe WigginsGlobal Asset and Wealth Management Alternatives LeaderPartner,PwC USDariush YazdaniAsset and Wealth ManagementGlobal Market Research Centre LeaderPartner,PwC LAbout the surveyPwCs Asset and Wealth Management Survey is an international su

147、rvey of asset managers and institutional investors.The goal of the survey is to better understand how the current AWM industry views changes related to ESG and the direction in which those changes are likely to take the industry in the coming years.The asset manager survey sample included 250 respon

148、dents,accounting for total global AuM of approximately US$50 trillion.The respondent base was largely cross-sectional in terms of size and tranche.The institutional investors survey consisted of 250 respondents,with combined global assets of US$60 trillion.Respondents covered a broad spectrum of AuM

149、 size,with more than half boasting assets of more than US$10 billion.Public pension funds and private pension funds together accounted for more than half of the institutional investor respondent PwC,our purpose is to build trust in society and solve important problems.Were a network of firms in 155

150、countries with over 327,000 people who are committed to delivering quality in assurance,advisory and tax services.Find out more and tell us what matters to you by visiting us at .PwC refers to the PwC network and/or one or more of its member firms,each of which is a separate legal entity.Please see for further details.2022 PwC.All rights reserved.