
ESG Investing Advisory
Evolution of ESG investing
ESG Concepts and Origins
1970-2000 From 1970, the principles of environmental, social, and governance (ESG) began gaining recognition in European and American financial markets. Key developments include the establishment of organizations and initiatives emphasizing responsible investing.
Global Expansion and Institutional Endorsement
2000-2020 After 2000, international organizations played a critical role in promoting ESG as a standardized investment benchmark globally. ESG principles became essential for evaluating asset allocations and risk assessments.
Increasing Importance in Global Markets
Post-2020 As of 2020, ESG investing has become integral within financial systems worldwide. Institutional investors increasingly prioritize ESG factors, recognizing their impact on long-term value and risks.
ESG is the well-received investment strategy now
Family Offices and ESG Integration
- Family offices are increasingly incorporating ESG into investment strategies to address social and environmental responsibilities.
- Research indicates that a significant percentage of family offices globally are actively engaging with ESG-focused investments.
- By integrating ESG criteria, family offices aim to achieve both financial returns and positive societal impact.
Public Funds and Policy Influence
- Public funds are embracing ESG due to policy incentives and the alignment of profit with sustainability goals.
- Many funds now require ESG criteria in their investment decision processes to enhance accountability and transparency.
- Leading funds are setting benchmarks for sustainability and incorporating ESG metrics as standard practice.
Private Funds and Long-term Value
- Private funds are responding to the growing demand for ethical investments by incorporating ESG into core strategies.
- The focus is on ensuring alignment with investors’ long-term values and achieving sustainable financial performance.
- The integration of ESG is increasingly seen as a key factor in risk management and opportunity realization.
Insurance Companies and ESG Risk Assessment
- Insurance companies use ESG criteria to assess risks and enhance decision-making processes.
- Incorporating ESG factors helps insurers identify potential liabilities and investment opportunities.
- This approach aligns with industry trends towards sustainability and responsible investing practices.
ESG Investment Strategies
Negative Screening | Exclude certain industries or companies from investment portfolios based on specific ESG criteria |
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ESG Integration | Systematically incorporate environmental, social, and governance factors into financial analysis |
Corporate Governance Engagement | Influence corporate behavior through shareholder power, including high-level talks, board meetings, and proxy voting aligned with ESG guidelines |
Best-in-Class Selection | Invest in industries or companies with exemplary ESG performance |
Norms-Based Screening | Invest according to minimum standards based on international norms and business practices |
Sustainability Themed Investing | Allocate funds to themes with strong sustainability potential, such as renewable energy and sustainable agriculture |
Impact/Community Investing | Direct capital to projects or organizations that generate measurable social or environmental benefits |
Key Benefits
ESG Investing Advisory
ESG Investment Strategy Planning
As a service provider and signatory of the United Nations Principles for Responsible Investment (UN PRI), we assist investment firms in integrating ESG principles throughout the investment process. This ensures comprehensive consideration of ESG risks and contributions. Our ESG investment strategy services enable businesses to make informed decisions, enhancing value creation and long-term sustainability.Before Investment
- Assisting in ESG integration within investment decisions
- Screening and evaluating targets based on ESG criteria
- Identifying potential ESG compliance issues
- Conducting ESG due diligence
- Developing ESG policy framework
At Deal Execution
- Assessing ESG risks and opportunities in portfolios
- Implementing ESG policies and management frameworks
After Investment
- Overseeing and reporting on ESG portfolio performance
- Enhancing ESG performance post-investment
- Communicating ESG metrics and reporting to stakeholders
- Providing ESG training
- Conducting ESG due diligence at project exit
