While both asset management and investment banking sectors are incorporating ESG considerations, the specific approaches can vastly differ. Asset management is more directly concerned with integrating ESG into investment decisions, while investment banks often play a role in advising corporate clients on ESG issues and facilitating ESG-related financial transactions. The common goal across both sectors is to promote sustainable and responsible business practices.
In determining which is "better," it depends on the perspective and the specific objectives in question. If the focus is on directly influencing corporate behaviour and investment decisions based on ESG criteria, asset managers may be considered more directly involved. However, investment banks play a vital role in shaping corporate strategies, providing financing for sustainable projects, and structuring financial instruments that support ESG initiatives.
In practice, a comprehensive and effective approach to ESG often involves collaboration between asset managers, investment banks, corporations, and regulators. Both asset managers and investment banks contribute to the overall ecosystem of sustainable finance and play important roles in advancing ESG principles in the financial industry. As the space changes, the question of asset managers versus investment banks will more successfully attract niche talent has arisen.
