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
Flexibility to specify your specific ESG criteria
Power to integrate your ESG criteria into any rules based investment strategy
Transparency and metrics to prevent greenwashing
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
simple to execute
binary choice
ESG Integration
include ESG factors into investment process
more complex
multiple options to express integration
Our platform facilitates both approaches
Common challenges
Defining ESG objectives
Ethics vs. return objectives - is there a conflict ?
Preferences with regard to ESG sub-categories
Different methods of implementing ESG into a portfolio strategy
ESG data quality
Ratings dispersion between different ESG data providers is well documented
ESG research from independent parties is limited
Our platform solves these problems
Eliminates barriers for asset owners to express their ESG preferences in full
Can connect to a variety of data providers and other publicly available sources
Enables independent research and verification
A new vision for ESG
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, be it “ready-made” ESG ratings or “raw” ESG data (e.g. CO2 emissions, etc.), on the risk-/return profile of any rules based investment strategy