The low standard of responsible investment (RI) practice by most asset managers is "shocking and disappointing", ShareAction's biennial report has concluded, after it found that global sustainability had 'slowed significantly' since 2022.

Its report, Point of No Returns, sets 20 basic standards expected of asset managers to achieve, from net-zero targets to local community engagement.

It claimed that while at least one asset manager met every standard, the majority failed to meet half of these standards.

Indeed, ShareAction said that every asset manager with a coal or tobacco commitment in this year's survey already had one in its 2023 report.

In addition, only four additional firms had committed to restricting at least some form of controversial weapon since 2023, compared with 11 that made such commitments between the 2020 and 2023 surveys.

Similarly, only six had introduced biodiversity requirements into policies for material sectors (such as agriculture, mining, or fisheries) since 2023, compared to 19 in the preceding period, and only four had sufficiently strong restrictions on coal, unconventional, and conventional oil and gas.

However, while the report criticised the progress made by many asset managers, the Netherlands performed above average.

It was the only country with three asset managers - Robeco, APG, and Achmea - in the top 10.

APG managing director of RI strategy and partnership, Claudia Kruse, said the company's high score can be attributed to two main factors.

"A group of fifteen colleagues coordinated by the RI execution team and RI strategy and partnership worked closely together to complete the survey and gather and submit the necessary data and documentation to ShareAction," she explained.

"In addition, APG is actively implementing its clients' responsible investment policies, including ABP's biodiversity policy, which aims to preserve nature and protect vulnerable ecosystems, and a new engagement policy.

"APG committed itself also to various sector initiatives, such as the Taskforce on Nature-related Financial Disclosures (TNFD) and a platform advocating for living wages in global supply chains (Platform for Living Wage Financials)," added Kruse.

She also claimed that, in the international context, Dutch pension funds generally have ambitious, responsible investment policies, which influence the broader market.

"The Netherlands is truly recognised as a leader in this area," said Kruse.

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