Sustainable Investing

ESG Policies and Stewardship Reporting

Globally, asset owners and investment managers are seeking to formalize their approach to environmental, social, and governance (ESG) issues by creating ESG policies and regularly reporting on their stewardship and engagement activities. The need for such information is clear as ESG-related regulations and investor stewardship codes come into effect, combined with growing demand for transparency from clients and other key stakeholders. Our expert consultants help investors to produce ESG policies and stewardship reports aligned with best practices (such as those developed by the Principles of Responsible Investment), building on our experience working with clients from leading ESG and Stewardship teams at global institutions. Our consultants can advise on key ESG themes to include, proxy voting guidelines, engagement priorities and key trends in the field of responsible investment.

ESG Due Diligence

Our specialist consultants help clients integrate environmental, social and governance (ESG) factors during the due diligence stage of the investment process. With our help, the ESG due diligence process can help identify key investment risks and opportunities for value creation that may influence decision-making. Due diligence information can also be valuable post-transaction, enabling the investor and management teams to enhance ESG performance and financial results.

ESG Integration

Recognizing that increased financial returns can go hand-in-hand with responsible business, investors are increasingly motivated to incorporate environmental, social, and governance (ESG) factors into portfolio decisions. With impact investing becoming mainstream, many investors are seeking guidance on how to bring ESG factors into their financial models. We provide tailored investment solutions, which help clients to maximize portfolio performance and capture opportunities to reduce risks through sustainable investments. 

Engagement Practices

As investors become more sophisticated at ESG integration, they begin to see opportunities for improving the performance of their portfolio companies through engagement on these issues. Engagement could mean focusing on a specific company or participating in broader initiatives. Both require resources, and so investors need to make careful and strategic choices about where to focus their efforts. They also need to be as effective as possible in doing so. We work with clients to determine which engagement activities will be of most value to the firm in both strategic and financial terms. We then assist them to ensure that these engagements produce the desired outcomes. We are very familiar with many of the most important collective engagement initiatives in this area and we can advise our clients on which of them to participate in. 

Impact Investing

We provide tailored consultancy services for clients who are interested in Impact Investing, or who wish to unlock the full potential for impact whist addressing the risks and challenges presented by this emerging practice. Impact investing concerns an investment strategy that seeks to identify investments in organisations or projects that have the potential to create measurable social and/or environmental impact, along with financial returns. We help clients to understand the risks and opportunities of impact investing, and provide expert consultations on implementation strategies. We also provide thought leadership around opportunities to scale impact investing, including building frameworks for program and investment managers to consider with regard to grant-making, Programme-Related Investments and Mission-Driven Investments. We are also at the forefront of relating impact investing to the wider investment ecosystem, through measuring both the direct and indirect consequences of impact investing. 

 

FEATURED CLIENT CASE STUDIES

Integrating ESG issues into quant investment models for Aviva Investors

The Aviva Investors equity quant team wanted to better understand if their proprietary quant model can be enhanced through the integration of environmental, social and governance data sourced and/or captured by their global responsible investment team