ESG: Building an effective framework
Sustainability is of global importance, impacting every facet of our lives.
For many investment managers, integrating ESG will result in a fundamental change to their current investment approaches. They should be guided by a strong appreciation of what their client aspirations are and how their portfolios can deliver positive long-term, risk-adjusted returns.
We believe approaching ESG integration with a strategic lens that considers your aspirations, your clients and your role as investment managers will assist you in preparing for the future of investing.
ESG Building Blocks
ESG should not be rushed
This is a marathon, not a sprint! A hasty approach to labelling products can have damaging consequences through unintentional greenwashing.
Gain clarity on your ESG stance
Be able to explain how you arrived at your position as it encourages buy-in from clients and your entire organisation too, enabling you to speak with conviction.
Have realistic ambitions
Initially, becoming signatories of numerous bodies might be too much to undertake. Be very mindful of what you sign up to and your ability to deliver!
Client communication is key
Your leadership is vital when integrating ESG into your company, and the wider economy. This will be evidenced by how well you bring clients along your ESG journey. Providing digestible information to clients is paramount.
Discuss controversial ESG issues
You should be able to discuss complex questions such as whether ESG sacrifices or enhances future returns, or why some UN SDGs are preferred more than others.
Sustain your ESG processes
Establish a robust governance framework that safeguards the reliability and usefulness of data, and ensure sound compliance and reporting systems are in place.
The future of humanity and indeed all life on earth is dependent on us
How we can help our clients
Our ESG Research and Thought Leadership
To ensure we understand the complexities associated with ESG integration, Devlin Mambo undertakes regular research papers and thought leadership content.