Top 10: ESG Fund Managers (2024)

What is ESG?

• E - Environmental. Often the most covered, the environmental element looks at the management of carbon footprint, emissions, climate change initiatives, resource management and impact on biodiversity among other things.

• S - Social. The social side involves a company’s relationships with employees, suppliers, customers and communities, including DE&I initiatives, human rights, community impact and health and safety.

• G - Governance. Corporate governance is the internal system of practices, controls and procedures a company adopts to govern itself, make effective decisions, comply with the law and meet the needs of external stakeholders.

These companies play a crucial role in the growing field of sustainable finance, helping to direct capital towards companies that contribute positively to society and the environment while also seeking to achieve competitive financial returns.

We’ve ranked the top ESG fund managers on factors including ESG investment strategies, performance, transparency and commitment to sustainable practices.

Allianz Global Investors

Allianz Global Investors is a leading asset management firm that operates as part of Allianz Group, one of the world's largest financial services providers.

Headquartered in Munich, Germany, Allianz Global Investors offers a diverse range of investment solutions and services to institutional and retail clients worldwide.

The firm engages with companies on ESG issues, advocates for sustainable business practices and seeks to drive positive change through active ownership and stewardship.

9.Fidelity

Fidelity

While based in the US, Fidelity has a global presence, with operations in North America, Europe, Asia and Australia managing more than US$10tn in client assets.

Fidelity is known for its active management approach to investing, employing teams of analysts and portfolio managers to research and select individual securities for its mutual funds and other investment products.

8.Charles Schwab

Chuck Schwab, founder of Charles Schwab

Charles Schwab Corporation is a prominent American financial services company known for its brokerage services, wealth management and banking products.

Headquartered in Westlake, Texas, the company was founded in 1971 by Charles R. Schwab as First Commander Corporation, initially operating as a traditional brokerage before being renamed Charles Schwab & Co., Inc. in 1973.

Schwab's technology initiatives include Schwab Intelligent Portfolios, an automated investment management service (robo-advisor) and advanced research tools and trading platforms for active traders.

7.Nuveen (a subsidiary of TIAA)

Genevieve Rose Sherman, Head of Sustainability & Policy at Nuveen

Founded in 1898, Nuveen is a prominent investment management firm that operates as a subsidiary of TIAA (Teachers Insurance and Annuity Association of America).

Headquartered in Chicago, Nuveen focuses on delivering strong, long-term investment performance while adhering to principles of responsible investing and was acquired by TIAA in 2014.

6. Vanguard Group

Vanguard Group

The Vanguard Group is one of the world's largest and most respected investment management companies, known for pioneering low-cost investing and popularising index funds.

Headquartered in Malvern, Pennsylvania, Vanguard serves a diverse range of clients, including individual investors, financial advisors and institutional investors.

As of 2023, Vanguard manages more than US$8tn in assets, making it one of the largest asset managers globally.

5. SSGA (State Street Global Advisors)

State Street Global Advisors

State Street Global Advisors (SSGA) is the asset management division of State Street Corporation, one of the world’s largest financial services providers.

Headquartered in Boston, Massachusetts, SSGA is known for its extensive range of investment products and services, particularly its exchange-traded funds (ETFs) under the SPDR (Standard & Poor's Depositary Receipts) brand.

Founded in 1978, SSGA manages approximately US$4tn in assets, making it one of the largest asset managers in the world. It's also known for social initiatives like the "Fearless Girl" campaign, which was aimed at promoting gender diversity in corporate leadership by placing a statue of a fearless girl facing the iconic Wall Street bull.

4.Amundi

Céline Boyer-Chammard, Chief Sustainable Transformation Officer of Amundi

Operating in more than 30 countries with hubs in Paris, Tokyo and Boston, Amundi serves a wide range of clients, including institutional investors, retail investors and intermediaries like financial advisors and banks.

Amundi places a strong emphasis on research and innovation, leveraging advanced data analytics, artificial intelligence and financial technology to enhance its investment processes and client offerings.

3. BlackRock

Nate Hurst Chief Sustainability and Social Impact Officer, Managing Director of BlackRock Foundation, BlackRock

BlackRock is one of the world's largest and most influential investment management firms.

Headquartered in New York City, BlackRock offers a wide range of investment and technology services to institutional and individual investors around the globe.

Founded in 1988, BlackRock initially focused on providing risk management and fixed-income institutional asset management services but has expanded its offerings and capabilities over the years, becoming a global leader in asset management and technology solutions.

“The ‘E’ and ‘S’ of ESG are two sides of the same coin,” Hurst believes.

“We can’t talk about climate change and the energy transition without recognising their impacts on people and communities. That’s why I’m excited to have expert minds across sustainability and social impact sitting around the same table and tackling these complex issues together.

"Working at a place and with people that rally around the same call to action makes it easy to walk in lockstep towards its reality.”

2.Parnassus

Robert Klaber, Director of ESG Research, Portfolio Manager at Parnassus

Greek mountain Mount Parnassus is traditionally associated with wisdom and learning.

Founded in 1984, Parnassus Investments was established with the aim of providing high-quality investments while adhering to strong ethical standards – so the name seemed a good fit.

Parnassus offers a range of mutual funds, including equity funds, fixed income funds and multi-asset funds. Some of their well-known funds include the Parnassus Core Equity Fund, Parnassus Mid Cap Fund and Parnassus Fixed Income Fund.

1.Federated Hermes

Federated Hermes

Federated Hermes is a global investment management company that provides a wide range of financial products and services, including mutual funds, separately managed accounts and institutional investment solutions.

Founded in Pennsylvania, US in 1955, the company is known for its commitment to integrating ESG factors into its investment processes.

In 2018, Federated Investors acquired a majority stake in London-based investment company Hermes Investment Management and, in 2020, the combined entity was rebranded as Federated Hermes.

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