Summary ESG investing and sustainability | Deloitte Insights www2.deloitte.com
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ESG investing is growing rapidly and investment managers should adapt by reviewing disclosures, implementing compliance policies, and considering digital transformation and third-party verification to meet client expectations and capture more ESG-mandated assets.
Slides
Slide Presentation (12 slides)
Key Points
- ESG investing is rapidly growing as regulators adopt ESG standards and investor preferences evolve.
- ESG-mandated assets are projected to represent half of all professionally managed assets globally by 2024.
- Investment managers can respond to this trend by reviewing their ESG investing disclosures and implementing compliance policies.
- The growth of ESG investing has led to an increase in the launch of ESG funds and alternative investment strategies.
- Transparency and responsible digital transformation are important in demonstrating authenticity in ESG investing.
- Investment managers should consider process improvements, report progress on sustainability goals, and use reporting frameworks to track responsible investment activities.
- By incorporating ESG principles, enhancing transparency, and meeting client expectations, investment managers can capture a larger share of ESG-mandated assets.
Summaries
54 word summary
ESG investing is on the rise, projected to reach 50% of all managed assets by 2024. Investment managers should adapt by reviewing disclosures, implementing compliance policies, and considering digital transformation and third-party verification. Differentiation can be achieved through sustainability, transparency, and streamlined disclosures. Incorporating ESG principles meets client expectations and captures more ESG-mandated assets.
58 word summary
ESG investing is growing, with ESG-mandated assets projected to represent 50% of all managed assets by 2024. To adapt, investment managers should review disclosures, implement compliance policies, and consider digital transformation and third-party verification. Firms can differentiate themselves through a sustainability ethos, transparency, and streamlining disclosures. Incorporating ESG principles helps meet client expectations and capture more ESG-mandated assets.
153 word summary
ESG investing is on the rise as regulators adopt ESG standards and investor preferences evolve. It is projected that ESG-mandated assets will represent half of all professionally managed assets globally by 2024. To respond to this trend, investment managers should review their ESG investing disclosures, implement compliance policies, and consider responsible digital transformation and third-party verification. The growth of ESG investing has led to an increase in the launch of ESG funds aligned with sustainability objectives, such as renewable energy. Investment management firms can differentiate themselves by adopting a sustainability ethos, engaging with employees, increasing transparency, and streamlining disclosures. Transparency is crucial in demonstrating authenticity in ESG investing, and investment managers should review proxy voting processes and provide clear disclosures. Process improvements, reporting progress on sustainability goals, and responsible digital transformation can strengthen commitment to sustainability. By incorporating ESG principles, firms can meet client expectations and capture a larger share of ESG-mandated assets.
342 word summary
ESG investing is rapidly gaining traction as regulators worldwide adopt ESG standards and investor preferences evolve. ESG-mandated assets are projected to represent half of all professionally managed assets globally by 2024. Investment managers can respond to this trend by conducting a holistic review of their ESG investing disclosures and implementing consistent compliance policies. Responsible digital transformation and third-party verification can also enhance sustainability initiatives and client engagement.
The growth of ESG investing has led to an increase in the launch of ESG funds that align with principles similar to Article 8, where ESG characteristics play a significant role in the investment decision-making process. The number of ESG fund launches is expected to continue growing, with a focus on specific sustainability objectives such as renewable energy. Alternative investment managers are also offering more ESG-aligned strategies, particularly in climate-focused funds.
Investment management firms can differentiate themselves by adopting a sustainability ethos and integrating ESG principles into their decision-making processes. This includes engaging with employees, increasing transparency, and streamlining disclosures about their impact on ESG-related objectives. By doing so, firms can enhance their credibility with stakeholders and attract and retain talent.
Transparency is crucial in demonstrating authenticity in ESG investing. Investment managers should review their proxy voting processes to ensure alignment with sustainability objectives and provide clear, precise, and tailored disclosures about their ESG approaches. Regulators are increasingly evaluating investment management firms' ESG practices, and compliance with disclosure requirements is essential.
To strengthen their commitment to sustainability, investment managers should consider process improvements throughout the organization and report progress on sustainability goals to investors. Due diligence questionnaires are increasingly focused on ESG criteria, and reporting frameworks such as UNPRI can help track responsible investment activities. Responsible digital transformation and third-party verification can also support sustainability initiatives.
Overall, investment managers have an opportunity to achieve a more sustainable world by incorporating ESG principles into their investment strategies. By adopting a sustainability ethos, enhancing transparency, and disclosing progress on sustainability outcomes, firms can meet the expanding expectations of clients and capture a larger share of ESG-mandated assets.