Impax’s takings slump after global retreat on sustainability
Impax Asset Management recorded a slump in revenue in the first half of the year as a global retreat on green policies turned clients away from its sustainability offering.
The firm cited a “challenging first half of financial year” with assets under management falling to £25.3bn. This was down from £37.2bn at the end of 2024 and £39.6bn 12 months prior to that.
Revenue dropped to £76.5m for the first half, compared to £86.2m in the same period of 2024.
This hit operating profits, which tumbled over £5m from the previous half-year to £20.5m.
In its business update, the firm said its thesis, on transitioning to a more sustainable economy, was “challenged by the idea there’s more money to be made in digital technology, particularly focused on artificial intelligence.”
Impax also cited “the impact of populist politics, especially in the United States.”
Since President Trump’s return to the White House, there has been a global retreat on environmental, social and governance (ESG) policies.
As Trump waged war on green policies with his withdrawal from the Paris climate agreement, financial services followed suit.
London-based lenders Barclays and Natwest have ditched their climate goals from bonus schemes, and earlier this month HSBC Asset Management announced the departure of its sustainability boss.
This wider approach to ESG had a crucial effect on Impax’s half-year performance.
Impax launches buyback despite woes
But the firm said it remained “financially strong” with zero debt and net assets of £117m.
Operating costs fell to £55.9m, down from £60.3m in the first-half of 2024.
In its investment division, the company said it benefited from “the broadening of market performance away from US-listed mega-cap stocks.”
This came as Trump’s ‘Liberation Day’ levies on the US’ trading partners sent markets into a period of turbulence. The firm said this drove “outperformance” in the period as the tariff-induced market turmoil boosted investment strategies.
Impax launched a £10m share buyback programme, in what the company described as a signal of “confidence in Impax’s future success.”
Ian Simm, chief executive of Impax, said: “Impax’s investment thesis is based on the insight that the transition to a more sustainable economy is both highly likely, as individuals and businesses prefer more efficient, less damaging goods and services, and also replete with investment opportunities, particularly due to the mispricing that often accompanies significant market developments in this area.”
He added: “We have made further progress towards our strategic priorities, which include enhancing our listed equities proposition and expanding our fixed income and private markets capabilities to help diversify our product offering.”