In the presentation, we provide our estimates of the current ESG AuM and how we expect this to increase by 2026. We also highlight the results of two PwC global surveys of asset managers and institutional investors. Our findings reveal an AWM industry in transition. By identifying ten market-defining trends, we stress the urgency for asset managers to move away from simply investing in ESG products and integrate ESG principles at the heart of their purpose, strategy and performance management. We also point out the need for AMs to reconfigure operating models to secure and retain mandates and create a compelling ESG story and develop credible reporting to track and communicate progress against it.

To do so, we believe it’s also important to build ESG into digital and workforce transformation as AMs look to boost insight, strengthen governance and deliver demonstrable value for money.