Northern Trust and PwC Strategy& recently conducted a global ESG market study of institutional investor clients (ESG's Imprint on Institutional Investing). The following statements are derived from this study:
In 2022, global ESG assets may surpass $41 trillion, one third of projected total assets under management globally. ESG assets are expected to hit $50 trillion by 2025.
Against this backdrop many asset owners and asset managers want to reposition themselves as leaders in ESG investing, but they face a plethora of complexities.
When asked what their greatest challenges are to incorporating ESG practices into their investment process, the top three listed were:
1. Collecting and analysing data
2. Improving transparency and reporting, and
3. Staying compliant with regulation
2RSquared’s technology platform LAB delivers a solution to these issues
On-boarding and management of ESG data - any data source, external or internal.
Integration of ESG data into the portfolio construction process in a flexible and systematic way – following regulatory templates, e.g. PAB, CTB, Article 8/9, or bespoke.
Comprehensive portfolio data analytics to make the relationship between risk/return of the base portfolio and the ESG overlay transparent.
Full auditability of the portfolio regarding the chosen ESG integration method for every single trade in the portfolio to avoid concerns around “greenwashing”.
Please contact us for a demo at: firstname.lastname@example.org - we look forward to hearing from you.