Case Study: Delivering an ESG Solution

ABOUT

Our client, an Asset Manager, was looking to establish themselves as a responsible investor globally.

 

BACKGROUND

  • For clients and regulators alike, ESG considerations and stewardship/active ownership of assets under management have become essential parts of investment products and with that of the asset management business model.
  • The global ESG market has grown to $31trn by the end of 2018 according to the Global Sustainable Investment Alliance and is expected to grow further.
  • This has led to a proliferation of ESG products, fund labels, sustainable company/country scores and underlying ESG data.
  • Clients in different parts of the world or at different stages of ESG sophistication.

 

CHALLENGE

  • Asset managers need an ESG product strategy that addresses all of their client’s needs and is differentiated, aligned with their investment capability and brand.
  • As part of the product features and marketing and to avoid the risk of greenwashing, serious consideration needs to be given to corporate sustainability and the active ownership capability (proxy voting & engagement).
  • To ensure a successful product range, ESG needs to be fully integrated in investment processes and the operating model of the asset manager, touching many departments from operations to marketing.

 

PROCESS & CAPABILITIES DELIVERED

Process:

  • Initial engagement with Clients and Prospects, Front office, Distribution and market analysis to understand key requirements.
  • Gap analysis between requirements and existing operating model.
  • Make or buy analysis, vendor selection, contract negotiation, and onboarding of systems and data / service providers.
  • Workshops to embed ESG in the operating model across the value chain.
  • Management of strategy launch.
  • C-level and Board engagement throughout.

 

What was delivered:

  • A unique rules-based ESG equity strategy designed for both performance and measurable ESG impact meeting different client needs at different levels of ESG sophistication.
  • A seamless ESG investment process and operating model that builds the foundation for future product development and tailoring across equity and fixed income.
  • Integration and calculating millions of data points for a proprietary ESG scoring methodology.
  • Communication, marketing, and client reporting concepts and rollout to position the strategy and its unique selling proposition in the market.
  • Active ownership model including focus topics that match the company philosophy and brand.

 

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