Key features
The power to incorporate ESG factors efficiently
Our technology facilitates a flexible ESG approach
Investors increasingly want to make a difference through sustainable investments and incorporating ESG factors (Environmental, Social, Governance) into their portfolio construction process
Ability to incorporate data from any vendor
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Flexibility to specify ESG criteria - ratings, raw-data,
hybrid-metrics
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ESG integration method - bespoke or aligned to
regulatory framework (e.g. CTB, PAB, Article 8/9, etc.)
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Full audibility of portfolio to prevent "greenwashing"
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Unlike an ETF or a fund, our platform can place the ultimate ownership of the underlying individual instruments with the asset owner, so the option exists to take take control of company engagement and stewardship
Common strategies
ESG Exclusion
avoid offenders
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simple to execute
binary choice
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ESG Integration
include ESG factors into investment process
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more complex
multiple options to express integration
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Our platform facilitates both approaches
Common challenges
Defining ESG objectives
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Ethics vs. return objectives - is there a conflict ?
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Preferences with regard to ESG sub-categories
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Different methods of implementing ESG into a portfolio strategy
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ESG data quality
Ratings dispersion between different ESG data providers is well documented
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ESG research from independent parties is limited
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Our platform solves these problems
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Eliminates barriers for asset owners to express their ESG preferences in full
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Can connect to a variety of data providers and other publicly available sources
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Enables independent research and verification
A new vision for ESG
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In addition to ethics based considerations or regulatory pressures, investors will benefit from being able to use data and fundamental insights with regard to ESG factors to drive returns going forward
2RSquared provides the ideal tool kit to integrate and research the impact of any type of ESG data on the risk-/return profile of any underlying investment strategy