The Responsible Asset Allocator Initiative (RAAI) at New America released The 2021 Leaders List: The 30 Most Responsible Asset Allocators, an indexed ranking of the world’s top sovereign wealth funds and government pension funds on their responsible investing practices. The 30 asset allocators on the RAAI Leaders List are a unique group, representing 15 countries and five geographic regions, including Africa, Asia, Australasia, Europe, and North America. With $7.9 trillion in AUM the Leaders exert enormous influence in global capital markets and can serve as a powerful force for change.
The study was developed in partnership with Professor Patrick Schena, Co-head of SovereigNeT at The Fletcher School, Tufts University. SovereigNet Research efforts for the 2021 Index were led by Mary Menzemer (MIB ‘21), Garima Gupta (MIB ‘22), Ming Dongfang (MIB ‘20) as well as by 2020 Milken Scholars Marina Guledani and Abdul-Fatawu Hakeem and 2021 Milken Scholars Vusani Khoza and Salma Din Sardakhan. “SovereigNet’s collaboration with New America on this initiative has been long-standing. Over the years, the work has exposed our students to the evolution of sustainable and responsible investing practices among large asset owners. The research conducted by our students for the RAAI index is relevant and important and highlights the uniqueness and value of Fletcher’s exceptional interdisciplinary skills-building,” said Professor Patrick Schena.
The study rated and ranked 251 asset allocators from 61 countries with assets of $26 trillion, to identify the 30 Leaders and 22 Finalists (The Top Quintile) that together set a global standard for leadership in responsible, sustainable investing. This year’s ranking builds on the ground-breaking RAAI index reports released in 2017 and 2019. For the 2021 RAAI Leaders List Report, researchers expanded the scope of coverage, evaluating 634 asset allocators and rating 251 institutions, up from 471 and 197 institutions, respectively, in 2019. The number of rating criteria increased from 20 to 30, raising the bar to a minimum score of 96% for the 30 asset allocators that were selected for the prestigious Leaders List. The 22 asset allocators selected as Finalists were not far behind the Leaders, needing a minimum score of 92% to be included in the Top Quintile.
A key innovation in the 2021 RAAI Leaders List Report is the introduction of scorecards for individual asset allocators as well as for countries, regions, and groups. The scorecards provide a benchmarking tool for comparing asset allocator responsible investing scores.
Responsible investing is a critical component for solving the complex challenges facing the world today, and global asset allocators have the capacity to make a significant difference. Through publishing this biannual index, our main goal is to mobilize capital through systemic change for a more sustainable world.