SEI Investments Company (SEIC): PESTLE Analysis [Nov-2025 Updated]

You need to know exactly where SEI Investments Company (SEIC) stands in 2025, and the reality is a high-stakes balancing act between massive scale and mandatory modernization. The firm is projected to manage over $1.5 trillion in Assets Under Administration and Management, a huge number that confirms its industry footing, but that scale is now tested by two major forces: a slowing US economy, projected at just 1.8% GDP growth, and a mandatory technology overhaul driven by AI and stricter fiduciary rules. This isn't just about market performance; it's about how SEIC navigates the political and legal minefield while fighting off newer, modular FinTech competition, so let's dig into the six macro factors that will defintely shape its strategic decisions this year.

SEI Investments Company (SEIC) - PESTLE Analysis: Political factors

US regulatory stability post-2024 election cycle reduces policy uncertainty.

You are defintely right to think about the US political landscape post-election. The shift to a Republican-controlled White House and Congress in 2025 signals a move toward a less restrictive regulatory environment for financial services, which is a net positive for a technology and operations provider like SEI Investments Company. This expected deregulation is a form of stability-not in policy remaining static, but in the direction of policy becoming more predictable and pro-business.

We anticipate a potential easing of compliance burdens, which directly benefits SEI's clients, particularly smaller banks and investment firms that use SEI's platforms for regulatory compliance. For instance, there is an expectation of rollbacks on certain Dodd-Frank Act compliance requirements and a scaling back of the Consumer Financial Protection Bureau's (CFPB) scrutiny. This could reduce the cost of compliance for SEI's client base, potentially freeing up capital they can then invest back into technology upgrades or new services from SEI.

However, the Supreme Court's overturning of the 'Chevron Deference Doctrine' means federal agencies like the Securities and Exchange Commission (SEC) will need to stick more closely to the plain language of the law. This legal shift introduces a new kind of risk: a greater likelihood of financial institutions challenging new regulations in court, which could lead to a wave of litigation and a temporary increase in legal uncertainty, even as the overall regulatory tone softens. For SEI, this means their compliance and legal teams must be incredibly nimble. It's a trade-off: less regulatory zeal, but more legal risk.

Increased global trade tensions affect cross-border investment flows and client sentiment.

Global trade tensions are a clear headwind, and they directly impact the cross-border investment flows that fuel SEI's global business. The world is seeing a rise in protectionism and economic fragmentation. The World Bank projected global growth to weaken to a mere 2.3 percent in 2025, a significant downgrade from earlier forecasts, largely due to escalating trade barriers and policy uncertainty.

This uncertainty has a tangible financial effect on SEI's clients. Global foreign direct investment (FDI) fell by 3% in the first half of 2025, extending a two-year slump. The most telling number for SEI's client base is the drop in cross-border mergers and acquisitions (M&As) in developed economies, which fell by 18% to $173 billion in the first half of 2025. Lower M&A activity means fewer large-scale integration projects for SEI's Private Banks and Investment Managers segments. Client sentiment turns cautious, leading to slower decision-making on large, multi-year technology outsourcing contracts. This is a real revenue risk.

The financial impact on SEI's business is currently being offset by strong performance in other areas, but the political environment remains a concern for global expansion:

SEIC Financial Metric (Nine Months Ended Sept 30, 2025)	Amount (in thousands)	YoY Change (%)	Political Context Impact
Revenues	$1,689,456	8%	Growth sustained despite global trade headwinds.
Operating Income	$465,693	15%	Strong margin expansion reflects cost discipline and operating leverage.
Diluted EPS	$4.25	32%	Benefit from operating growth and share repurchases.

Geopolitical risk drives demand for sophisticated risk management and compliance platforms.

The flip side of global risk is a massive opportunity for SEI's technology and operations outsourcing business. Geopolitical risk-from the Russia-Ukraine and Israel-Hamas conflicts to cyber warfare-is no longer a fringe concern; it's a core business risk. Chief Risk Officers (CROs) are taking notice: a new survey shows that 70% of CROs believe changes in geopolitical conditions will impact their organizations, making it the third most important priority for their firms over the next 12 months.

This heightened anxiety translates directly into demand for SEI's core offering: sophisticated, outsourced risk and compliance platforms. Firms need to:

• Strengthen sanction management tools to comply with rapidly changing international restrictions.
• Enhance scenario analysis to model the impact of political shocks on portfolios.
• Build operational resilience against rising cyberattacks, which have nearly tripled for EU/EEA banks since 2022.

SEI's integrated technology solutions are perfectly positioned to capture this spending, acting as a single, compliant source of truth for clients navigating this multi-dimensional risk environment.

Government-backed incentives for digital transformation in financial services.

Governments worldwide are actively pushing for digital transformation to boost national competitiveness, and this creates a tailwind for SEI, whose business is fundamentally about providing technology-driven solutions. While the US focus is more on deregulation, other key markets are providing direct incentives.

For example, Canada's Budget 2025 proposes significant investments in Artificial Intelligence (AI) and quantum computing, including C$925.6 million over five years to develop a large-scale sovereign public AI infrastructure. This type of government-backed investment creates a broader ecosystem of AI talent and infrastructure that SEI and its clients can draw upon for their own digital initiatives, such as hyper-personalization and advanced data analytics.

The global push for Open Banking, which mandates data sharing via APIs (Application Programming Interfaces) to foster competition, is another politically-driven trend. This forces traditional financial institutions-SEI's core clientele-to modernize their core systems to be API-ready, a service SEI provides. The political will to mandate this change is a significant, non-cyclical driver of demand for SEI's technology infrastructure solutions.

SEI Investments Company (SEIC) - PESTLE Analysis: Economic factors

Estimated total Assets Under Administration (AUA) and Assets Under Management (AUM) is projected to exceed $1.5 trillion in 2025.

The core of SEI Investments Company's (SEIC) business strength lies in its massive scale, which is an economic moat (a sustainable competitive advantage) in the asset servicing world. As of September 30, 2025, the company's total assets under management, advice, or administration stood at approximately $1.8 trillion. This figure is a critical revenue driver, as fees are largely based on a percentage of these assets. For context, this represents a significant jump from the approximately $1.5 trillion reported as of June 30, 2024.

The growth in Assets Under Administration (AUA) has been particularly strong in the alternatives sector, which includes private equity and private credit, showing continued momentum in the Investment Managers business. This segment, which services complex alternative funds, has been a key focus, and its success helps offset volatility in traditional asset classes.

Metric	Value as of Q3 2025 (Sept 30)	Impact on SEIC
Total Assets Administered/Managed	Approx. $1.8 trillion	Directly drives fee revenue and operating leverage.
Q2 2025 Integrated Cash Program Contribution	$21 million	Indicates strong benefit from higher short-term rates in cash management fees.
US Real GDP Growth Forecast (4Q/4Q)	1.8%	Slowing growth could curb new institutional mandates and client risk appetite.

Persistent interest rate volatility impacts fixed-income valuations and cash management fees.

The Federal Reserve's (Fed) continued fight against inflation means interest rate volatility remains a defining feature of the 2025 economic landscape. SEI's own fixed-income outlook for 2025 suggests rates will likely stay 'higher for longer' due to persistent inflation concerns. This environment creates a dual effect for SEI.

On the positive side, higher short-term rates have significantly boosted the company's integrated cash management program. For instance, the Investment Advisors segment saw a $21 million contribution from this program in the second quarter of 2025 alone, which was an $11 million increase from the same period in 2024. That's a clear, immediate benefit to the bottom line. But, on the flip side, the volatility itself can cause market-related drag on overall revenue and lead to delays in private banking deals, as seen in Q2 2025.

Global inflation pressures increase operational costs, despite strong fee revenue.

While SEI benefits from its fee-based revenue structure during periods of market appreciation, the sticky nature of global inflation is still a headwind. The consensus forecast for core Personal Consumption Expenditures (PCE) inflation in the US is projected to be around 2.9% for the fourth quarter of 2025, remaining above the Fed's 2% target. This persistent inflation directly translates to higher operational costs for a global technology and services company like SEI.

The company is making intentional investments in its talent and technology, which are necessary for future growth but increase current expenses. This hiring ahead of expected new business, especially in the Investment Managers segment, and the overall rising cost of labor and technology infrastructure due to inflation, puts pressure on operating margins, even with strong revenue growth. They're spending money to make money later.

Slowing US GDP growth (est. 1.8% for 2025) could curb new institutional mandates.

The estimated US real GDP growth for 2025 is forecast to slow to approximately 1.8% on a 4Q-over-4Q basis. This deceleration signals a cooling economy, which can directly impact SEI's client base. A slower economy often leads to reduced risk appetite among institutional investors and a potential pause in new, large-scale mandates for outsourcing services.

Firms tend to be more cautious about making big strategic shifts, like moving their entire operating platform, when the economic outlook is uncertain. While SEI's diversification across geographies and asset classes has helped, as evidenced by its Q1 2025 AUM increase despite a decline in the S&P 500, a prolonged slowdown will defintely test client confidence.

Strong US dollar still makes international expansion more expensive.

SEI is a global provider with operational centers in places like London, Dublin, and Luxembourg, and it is actively pursuing international growth. The continued strength of the US dollar relative to other major currencies makes foreign acquisitions, capital investments, and even the operational costs of international offices more expensive when translated back into US dollars. This currency headwind means a dollar-denominated budget for a new European technology build, for example, buys less local currency labor or hardware. This economic factor adds an extra layer of cost and complexity to SEI's stated goal of global expansion and innovation.

SEI Investments Company (SEIC) - PESTLE Analysis: Social factors

Accelerating wealth transfer to Millennials and Gen Z drives demand for digital-first advice platforms.

You need to understand that the largest intergenerational wealth transfer in history is already underway, and it dramatically shifts who your client is and what they expect. Baby Boomers are set to pass down an estimated $68-84 trillion in assets, primarily to Millennials and Generation Z. This isn't just a future problem; 55% of Millennials and 41% of Gen Z expect to inherit assets within the next five years.

This new cohort of wealth holders is distinctly digital-native. They are not satisfied with quarterly paper statements and a phone call. Over 70% of Millennial and Gen Z heirs prefer digital communication and expect seamless, mobile-first solutions for portfolio management, reporting, and even family governance. Gen Z, in particular, is starting to invest earlier, at an average age of 19, compared to the Millennial average of 25. This means SEI Investments Company must continue to accelerate its investments in the SEI Wealth Platform and other digital tools to capture this incoming capital, which is already reflected in the company's strong year-to-date net sales events of $106.3 million through Q3 2025.

Here is a quick view of the generational shift in investment preferences:

Generation	Average Starting Age for Investing	Preference for Digital/Mobile	Cryptocurrency Holdings
Gen Z (Born 1997-2012)	19	High (Mobile-First)	Nearly 50% of young investors
Millennials (Born 1981-1996)	25	High (Seamless Digital)	Nearly 50% of young investors
Older Generations	32+	Lower	Significantly Lower

Growing public focus on Environmental, Social, and Governance (ESG) investing mandates product shifts.

The rise of Environmental, Social, and Governance (ESG) investing is no longer a niche trend; it's a core social mandate that drives product development. Nearly 90% of global individual investors are now interested in sustainable investing, and this interest is near-universal among the next generation: 99% of Gen Z and 97% of Millennials are interested. For SEI, this means the demand for ESG-compliant funds and reporting tools is a non-negotiable growth driver.

Over 60% of Millennial and Gen Z heirs explicitly state that ESG factors are a top priority in their investment decisions. They are more likely to divest from companies that don't align with their values. This preference is translating into real asset movement: the ownership of sustainable investments among wealthy individuals has doubled since 2018, now standing at 26%. Furthermore, 89% of all investors consider ESG when making investment decisions. SEI must ensure its asset management and technology solutions, which administer approximately $1.8 trillion in assets as of September 30, 2025, have robust capabilities to screen, report, and manage these ESG-mandated portfolios.

Labor market tightness requires higher compensation for top tech and financial talent.

The competition for specialized talent, especially in the technology and financial sectors, remains fierce in 2025, despite some cooling in the overall job market. For a financial technology and operations provider like SEI, securing engineers, AI specialists, and high-level financial analysts is defintely a cost pressure point. The tech unemployment rate, for instance, is hovering around 3 percent nationwide in mid-2025, which is well below the national average of approximately 3.8-4.0 percent.

This tightness forces a clear action: pay more. 84% of hiring managers are prepared to offer higher pay to candidates with specialized skills. Compensation for critical roles like AI, Cloud, and Cybersecurity is seeing mid-to-high single-digit year-over-year growth in 2025. Beyond salary, flexibility is a major currency; candidates are willing to trade 10-15% of their salary for autonomy and trust. SEI must continue its stated strategy of making intentional investments in its talent to maintain its competitive edge in technology and infrastructure, as noted by its leadership.

Increased demand for financial literacy tools and transparent fee structures from retail investors.

The societal shift toward greater financial literacy and transparency is a direct challenge to complex, opaque fee structures. Younger generations, having witnessed major market dislocations, prioritize financial education and expect simple, clear guidance from their advisors. They want the jargon translated.

This demand for clarity is tied to their preference for digital platforms, which inherently offer more real-time access and transparency into performance and fees. The expectation is that financial services providers will offer tools that demystify investing, not complicate it. For SEI, this means the technology it provides to its clients-independent advisors and institutions-must enable a high degree of fee transparency and intuitive performance reporting. If your client's onboarding process is complex or fees are hidden, you'll lose the new generation of investors who value simplicity and trust above all else.

• Prioritize simple, visual reporting tools.
• Make all fee structures fully transparent and easy to access.
• Offer educational content directly integrated into the digital platform.

SEI Investments Company (SEIC) - PESTLE Analysis: Technological factors

Mandatory cloud migration for core processing platforms increases SEI's tech spend.

You can't run a modern financial services platform on legacy infrastructure anymore; it's a non-negotiable cost of doing business. For SEI Investments Company (SEIC), the mandatory migration of core processing platforms to the cloud is a significant driver of technology expenditure in 2025. This move is essential for scalability, operational agility, and supporting the approximately $1.8 trillion in assets SEI manages, advises, or administers as of September 30, 2025.

The push toward cloud services, security infrastructure, and analytics is a top spending priority across the industry in 2025. SEIC's consolidated operating margin improved to 28% in the third quarter of 2025, reflecting operating leverage on strong revenue growth, but this margin improvement is balanced against 'intentional investments in our talent, technology, and infrastructure' to support expected growth. This is a multi-year effort, and the near-term capital outlay is substantial.

Here's the quick math on the scale of operations requiring this investment:

Financial Metric (Nine Months Ended Sept 30, 2025)	Amount (in thousands)	Insight
Consolidated Revenues	$1,689,456	Scale of operations requiring modern infrastructure.
Consolidated Operating Income	$465,693	Must maintain this profitability while funding the migration.
Assets Administered/Advised (Sept 30, 2025)	Approx. $1.8 trillion	The core platform must handle massive data and transaction volumes.

What this estimate hides is the cost of re-architecting the SEI Wealth Platform (SWP) for a cloud-native environment, plus the ongoing operational expenses (OpEx) for cloud services, which can be unpredictable. You have to spend money to save money later.

Artificial Intelligence (AI) integration is crucial for automating compliance and portfolio construction.

AI is not just a buzzword here; it's a critical tool for maintaining a competitive edge and managing regulatory complexity. SEIC is actively integrating Artificial Intelligence (AI), having launched its proprietary generative AI framework, SEIGPT, in late 2024. This framework, built on Retrieval Augmented Generation (RAG) architecture, is designed to enhance client experience and streamline workflows.

The focus is on using AI agents-intelligent virtual assistants-to drive employee efficiency and productivity, which is defintely needed in high-volume, rules-based tasks like compliance and trade reconciliation. SEIC already had seven AI applications in production by late 2024, with a goal of having more than a dozen available soon after, reflecting a clear dedication to innovation for scalability. The RAG architecture is key because it provides transparency into the data used to generate responses, which is a non-negotiable requirement for regulatory compliance in financial services.

• SEIGPT provides transparency for compliance confidence.
• AI agents automate tasks for employee efficiency.
• Seven AI applications were already in production, driving scalability.

SEI's core SEI Wealth Platform (SWP) faces competitive pressure from newer modular FinTech offerings.

The SEI Wealth Platform (SWP) remains a core asset, securing new client collaborations like the one with Syverson Strege in late 2025. Still, the platform operates in a market segment facing 'ongoing competitive and market pressures.' The challenge comes from newer FinTech rivals offering modular, API-driven solutions that allow wealth managers to pick and choose services-like a modern, digital à la carte menu-instead of adopting a single, integrated, but potentially less flexible, platform.

This competition forces SEIC to continuously invest in modernizing SWP to maintain its value proposition of a unified, end-to-end solution. The industry is shifting, and modernization and operational agility are key for managers to succeed amid market transformation. To stay ahead, SEIC must demonstrate that the comprehensive nature of SWP provides better total value and integration than a patchwork of best-of-breed modular solutions.

Cybersecurity threats necessitate continuous investment to protect client data and platform integrity.

As a global financial technology provider managing or administering approximately $1.8 trillion in assets, SEIC is a prime target for cyberattacks. Cybersecurity is a foundational risk factor, especially as the company expands its business-to-consumer products, which increases exposure to heightened threats and data privacy concerns.

SEIC addresses this by offering a unified cybersecurity solution, the SEI Sphere Cyber Team, which combines industry-leading enterprise technology with proprietary systems. This continuous investment is non-discretionary. Industry data for 2025 shows that cloud security and data security are the top two priorities for increased cybersecurity spending. Moreover, AI-driven cyber-attacks have topped ransomware as the leading unaddressed security challenge, forcing firms like SEIC to use AI defensively.

The investment is not just about protection; it's a core business enabler. A strong security posture is a major selling point to new partners and clients, adding quantifiable value to the business.

SEI Investments Company (SEIC) - PESTLE Analysis: Legal factors

Stricter fiduciary duty standards, like potential updates to the Department of Labor (DOL) rule, increase compliance overhead.

The regulatory environment around fiduciary duty remains a significant cost driver and a source of uncertainty for SEI Investments Company, particularly in its retirement and advisory segments. While the Department of Labor (DOL) withdrew its defense of the previous administration's 'Retirement Security Rule' in November 2025, effectively pausing the immediate implementation of a sweeping new fiduciary standard, the core risk remains. This back-and-forth demands constant, costly updates to compliance systems and training for investment advisors.

The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are still laser-focused on investor protection. For 2025, the SEC's examination priorities specifically highlight adherence to fiduciary standards and scrutinizing rollover recommendations to ensure they prioritize the client's best interest over the firm's profitability. To mitigate this risk, SEI Investments Company must maintain a substantial compliance budget. For context, the company reported consolidated revenues of $551,344,000 and operating income of $157,097,000 for the first quarter of 2025, demonstrating the scale of operations that requires defintely robust oversight. One small win: a March 2025 amendment to the DOL's Voluntary Fiduciary Correction Program (VFCP) now allows fiduciaries to self-correct certain prohibited transactions, which is a welcome reduction in administrative burden.

New state-level data privacy laws (e.g., California Consumer Privacy Act) force costly data governance changes.

The absence of a unified US federal data privacy law means SEI Investments Company faces a fragmented and rapidly expanding patchwork of state-level regulations. By late 2025, 19 US states have passed comprehensive consumer privacy laws, with nine new state laws coming into effect this year. This complexity is a massive operational headache.

For a firm like SEI Investments Company, which handles vast amounts of client data, the compliance challenge is twofold: they must adhere to the federal Gramm-Leach-Bliley Act (GLBA) for nonpublic personal information and the state laws for other consumer data, like website analytics. The California Consumer Privacy Act (CCPA), as amended by the California Privacy Rights Act (CPRA), is the benchmark, applying to businesses with annual revenue exceeding an adjusted $26.6 million in 2025 or those processing data for 100,000+ California residents. The risk is real: some state laws, like New Hampshire's, include a mandatory 60-day cure period for violations only until December 31, 2025, after which the state Attorney General has full discretion on enforcement.

The required changes force significant technology and process investments:

• Map all consumer data flows to determine jurisdiction.
• Implement systems to process consumer requests (access, deletion, correction).
• Update privacy notices to be clear and comprehensive for each state.
• Ensure third-party vendors meet DORA-like compliance standards (Digital Operational Resilience Act).

Anti-money laundering (AML) and Know Your Customer (KYC) regulations require ongoing platform updates.

The global fight against illicit finance, estimated to involve over $1.6 trillion in laundered funds annually, is driving continuous, non-negotiable updates to AML/KYC platforms. For a global financial technology and asset management provider like SEI Investments Company, this means constant investment in technology to keep pace with evolving criminal tactics.

Regulators are demanding a shift from static compliance to dynamic, risk-based models, which is pushing the industry toward:

• Perpetual KYC (pKYC): Using automation and AI to continuously monitor customer risk profiles, not just at onboarding.
• Stricter UBO Disclosure: Enhanced due diligence (EDD) to identify and verify Ultimate Beneficial Owners (UBOs) in complex structures, especially following FinCEN's March 2025 revisions to Beneficial Ownership Information reporting.
• Real-time Sanctions Screening: Driven by geopolitical tensions, requiring immediate updates against global sanctions lists.

Enforcement is active and costly. In June 2025, SEI Investments Distribution Co (SIDCO), a subsidiary, agreed to pay a FINRA fine of $150,000 for failing to report approximately 19,160 transactions correctly between 2013 and 2021, underscoring the risk of legacy systems and reporting deficiencies. This fine, while small in the context of SEI Investments Company's Q1 2025 operating income, is a clear signal that regulators will penalize failures in fundamental reporting and compliance.

Increased enforcement risk from the Securities and Exchange Commission (SEC) on digital asset custody.

Digital assets are a massive growth area for SEI Investments Company, but they also bring significant legal risk due to the lack of clear federal legislation. The SEC is actively trying to define the regulatory perimeter through its 'Project Crypto,' which includes a focus on custody.

The most pressing issue is the SEC's custody rule framework. In September 2025, the SEC's Division of Investment Management provided a key no-action letter, allowing SEC-registered investment advisers to use certain 'State Trust Companies' as qualified custodians for Crypto Assets. This is a temporary solution, but it comes with strict requirements that SEI Investments Company must ensure its platform and partners comply with:

Custody Requirement	Implication for SEIC's Platform
Segregation of Assets	Crypto Assets must be segregated from the custodian's own assets.
Non-Rehypothecation	No lending, pledging, or rehypothecating of Crypto Assets without prior client consent.
Written Custody Agreement	Mandatory, detailed agreements outlining the above protections.

Also, the DOL rescinded its 2022 guidance in May 2025 that had cautioned fiduciaries to exercise 'extreme care' before adding cryptocurrency to 401(k) menus. This restores a neutral, prudent-man standard under the Employee Retirement Income Security Act (ERISA), potentially opening the door for SEI Investments Company to offer more digital asset services within its retirement platform, but the SEC's custody rulemaking is still on the Spring 2025 Regulatory Agenda and could change everything.

SEI Investments Company (SEIC) - PESTLE Analysis: Environmental factors

Growing pressure from institutional clients to integrate climate risk into portfolio reporting.

You're seeing a clear shift: institutional clients aren't just asking about climate risk anymore; they are demanding it be embedded in the core portfolio reporting. SEI Investments Company, with its history of custom sustainable investing strategies spanning over 30 years, is well-positioned, but the pressure is still rising.

This client-driven demand translates directly into the need for granular, verifiable data on climate-related financial risks (CRFRs). For example, SEI Investments (Europe) Limited (SIEL) already publishes an annual Task Force on Climate-Related Financial Disclosures (TCFD) report to meet the requirements of the U.K.'s Financial Conduct Authority (FCA). This existing infrastructure helps them serve global clients, but US-based institutional investors are now pushing for the same level of transparency across all mandates.

The core challenge is translating a client's specific environmental values-whether it's divestment from fossil fuels or investment in green infrastructure-into a scalable, operational reporting feed. It's no longer enough to offer a single ESG fund; you need customized, flexible solutions.

Mandatory Task Force on Climate-Related Financial Disclosures (TCFD) or similar reporting looms for large asset managers.

While the SEC's final climate disclosure rules for US public companies remain in flux, the regulatory landscape is defintely hardening, especially at the state level. This is the new near-term compliance risk. For SEI, the most immediate and concrete mandate comes from California's new laws, which effectively act as a national standard for large companies doing business in the state.

Here's the quick math on why this matters for SEI Investments Company:

• California's Climate Corporate Data Accountability Act (SB 253) requires annual public disclosure of Scope 1, 2, and 3 greenhouse gas (GHG) emissions.
• The threshold for compliance is US-organized entities doing business in California with total annual revenues exceeding $1 billion.
• SEI Investments Company's trailing twelve months (TTM) revenue ending September 30, 2025, was approximately $2.25 billion.

Because of this revenue figure, SEI is required to report its Scope 1, 2, and 3 emissions for the fiscal year 2025 data, with the first disclosures due in 2026. This mandate forces the firm to formalize the collection and assurance of its entire value chain's emissions (Scope 3), a massive undertaking for a financial services company with approximately $1.6 trillion in assets under management, advised, or administered as of March 31, 2025.

SEI must demonstrate operational sustainability to maintain its competitive edge with ESG-focused investors.

Your firm's own footprint is a key diligence point for sophisticated ESG investors. If you're advising clients on climate risk, you must show you manage your own. SEI Investments Company's corporate sustainability reporting highlights that their operational GHG emissions are primarily linked to office and data center energy consumption.

While the firm has made investments in energy efficiency, such as upgrading the building management system (BMS) and HVAC equipment at its headquarters, the lack of a formal, public, science-based target is a competitive gap.

For the fiscal year 2025, SEI Investments Company reported total operational carbon emissions of approximately 3,090 kg CO2e, broken down as follows:

Emission Scope	2025 Operational Emissions (approx. kg CO2e)	Primary Source
Scope 1	0	Direct emissions (e.g., owned vehicles)
Scope 2	930	Purchased electricity/energy
Scope 3	2,160	Indirect emissions (e.g., business travel)
Total	3,090

What this estimate hides is the need for a formal commitment. The firm does not currently have documented reduction targets or commitments to frameworks like the Science Based Targets initiative (SBTi). This is a soft spot that competitors with formal net-zero commitments will exploit in client pitches.

Increased shareholder activism targeting climate-related governance and investment practices.

Shareholder activism in the environmental space is moving beyond oil and gas companies and directly into the boardrooms of asset managers. SEI Investments Company has proactively responded to this trend by joining the Climate Action 100+ initiative in 2021, an investor group representing over 545 investors and more than $52 trillion in assets.

This participation is a critical defensive measure, as it positions the firm as an active steward. Their investment stewardship program focuses on using their voice through engagement and proxy voting to influence the companies they invest in.

Key actions in 2024, which set the tone for 2025, demonstrate this:

• Engagement: Collaborating with third-party specialists like Sustainalytics to push companies, such as Vistra, to announce long-term net-zero carbon emissions goals by 2050.
• Proxy Voting: Voting For a climate change-related shareholder proposal at Boeing Co. in May 2024.

The risk here is not just a proposal passing, but the reputational damage from being perceived as a laggard. Your clients expect you to use your fiduciary power to manage systemic climate risk, and active stewardship is the clearest way to show you're doing it.