Asset owners are strengthening their expectations of how climate stewardship is delivered and evidenced.

A coalition representing more than $2.3 trillion in assets has endorsed a joint statement defining what effective climate engagement, escalation and reporting should look like - signalling the continued integration of climate stewardship into manager evaluation and oversight.

Key Takeaways

• 38 asset owners representing more than $2.3 trillion in assets have signed a joint statement outlining shared expectations for climate stewardship.

• For managers, this reaffirms that climate engagement and disclosure quality are integral to investment oversight and mandate evaluation.

• This follows a year in which State Street Global Advisors (£28bn), BlackRock (£14bn) and Harris Oakmark (£105m) each faced mandate withdrawals linked to ESG and stewardship performance.

What happened?

The Asset Owner Statement on Climate Stewardship, first published in February 2025, was co-authored by an asset owner coalition led by the Brunel Pension Partnership, The People’s Pension, and Scottish Widows.

The statement - available here - sets out five clear expectations for how asset managers should integrate climate considerations into their stewardship and engagement activity.

Since its release, the initiative has gained momentum, with 38 global asset owners - representing more than $2.3 trillion in assets - now endorsing the principles. The statement affirms that climate change is a material financial risk that must be managed through consistent, transparent stewardship by both asset owners and the managers they appoint.

Among the core expectations are:

• Policy alignment - Asset managers should ensure their public policy engagement supports the goals of the Paris Agreement.

• Collaborative engagement - Participation in initiatives such as Climate Action 100+ is encouraged to maximise effectiveness and reduce duplication.

• Engagement priorities - Focused attention should be given to sectors central to decarbonisation, including energy, transportation, materials and finance.

• Escalation and voting - Managers should maintain clear escalation frameworks and report transparently on voting activity where progress falls short.

• Resourcing and capability - Stewardship teams should be adequately resourced, with the data and expertise required for effective climate engagement.

 

Why this matters for investors

The expanding list of signatories reinforces that climate stewardship is a core consideration in investment management and mandate evaluation.

Asset owners are setting consistent expectations for how managers integrate climate risk, document engagement outcomes and apply escalation policies. This approach is already influencing mandate reviews.

Over the past year, The People’s Pension has withdrawn a £28bn global equity mandate from State Street Global Advisors, while the New York City Comptroller’s Office reallocated $14bn from BlackRock over concerns around climate engagement and transparency. In the UK, the London Borough of Camden Pension Fund recently reviewed £105m Harris Oakmark mandate, citing both performance and limited ESG integration. These stories are explored in more detail here.

These examples illustrate that stewardship standards and climate alignment continue to be actively assessed across mandates of all sizes - from global asset managers to mid-sized firms.

For managers, the statement highlights the importance of structured approaches to target-setting, escalation and reporting, backed by verifiable evidence of implementation in practice.

Transparency, consistency and credible application are central to how asset owners evaluate stewardship and climate performance.
 

How asset managers can align with asset owner expectations

To meet these expectations, managers should:

• Maintain clear frameworks for climate governance, engagement and voting.

• Provide consistent, auditable reporting on engagement outcomes and escalation processes.

• Demonstrate how stewardship resources and data systems support investment and engagement decisions.

• Communicate measurable progress on climate objectives to clients and consultants.

Managers that demonstrate credible stewardship and transparent reporting will be best placed to maintain confidence and long-term partnerships with asset owners.
 

How Integrum ESG supports credible climate stewardship

At Integrum, we help asset managers substantiate their ESG and climate integration through transparent, auditable data and real-time intelligence.

With climate stewardship expectations increasingly codified, credible data and clear reporting are essential to maintaining institutional trust and alignment with asset owners.

ESG Intelligence which is fast, transparent and affordable - only on the Integrum Platform.