25 August 2023
White paper download:
Today, Expand Research, a BCG Company, and 2RSquared present a collaborative insights white paper titled "Technology’s Role in ESG Integration in the Buy-side" that delves into how companies can leverage technology to stay ahead.
In today's market, firms are under growing pressure to adopt investment strategies that focus on environmental, social, and governance (ESG) considerations. However, there are difficulties in efficiently leveraging ESG data and integrating it into a company's operations. The unreliable and inconsistent nature of available information makes it challenging for investors to identify the most relevant ESG metrics to track. Moreover, the absence of a universally accepted framework or rating system further complicates the evaluation of ESG factors.
Along with this, the increasing focus on regulatory requirements and mandates is resulting in a shift in how asset managers approach these challenges. The transformation required involves prioritising comprehensive ESG analysis, leading to notable changes in organisational structure. Dedicated teams are being created to meet the growing demands of ESG and ensure effective management of these factors.
Technology is playing a crucial role in aiding firms to overcome ESG data challenges and meet growing demands. By employing SaaS platforms such 2RSquared's LAB, firms can effectively manage data, automate processes, drive transparency and make informed decisions aligned with their ESG goals. Those companies that have not started incorporating ESG into their investment strategies are already falling behind their competitors in the buy-side industry and so should be looking to partner intelligently with providers that can provide out-of-the-box capability.