ESG Integration for Asset Owners

Asset owners and asset managers are largely starting to recognize the systemic impacts of sustainability. They now require comprehensive frameworks to navigate the changing market landscape and recognize potential leaders and greenwashing intentions.

ESG Integration for Asset Owners

The long-term nature of asset owners’ liabilities requires a comprehensive sustainability strategy. Perceived future risk can be underestimated in the short term, and current asset valuations may hence be exposed to unexpected adjustments in years to come. As stewards of capital, an asset owner’s objective is not only to fully fund liabilities, but also to make those returns sustainable in the future.

Invartis has developed a holistic ESG integration framework tailored to asset owners. Our framework emphasizes on external mandates and internal management. Similarly, as universal owners, a focus on systemic trends is key to deliver sustainable risk-adjusted returns to beneficiaries.

We provide investment managers with a cost-effective, end-to-end ESG solution that combines integration consulting for core activities and an outsourced managed service for non-core ESG-critical activities. Our structured service helps investment managers holistically integrate ESG best practice into their investment process, comply with regulatory guidelines, and strengthen the resilience of client assets.

How we can help

Initiating an internal discussion about purpose is challenging, but expectations for asset owners and asset managers are evolving rapidly among investors, stakeholders, and society at large.

Our ESG integration framework is a holistic approach to investment and operational processes, where material factors—ESG factors and traditional financial factors—are identified and assessed as part of the research and decision-making process.

Whereas traditional ESG integration approaches often focus exclusively on activities driven by investment teams, giving lower priority to integration within non-investment areas (e.g., governance, compliance, data management); our framework is tailored to and includes all relevant areas of the operating models of asset owners and asset managers.

We have built a flexible model designed for continuously improving and evolving practices in Sustainable Investments. Invartis’ frameworks and deliverables are all based on industry accepted international frameworks such as UN PRI, SASB, CFA Standards, WEF, TCDF, and GRI.

ESG Integration Approaches

The ESG integration journey is different for every asset manager. Our experience tells us that there is no one size fits all approach as nuances arise depending on size, asset classes, geography, investment philosophy, operating models, among others.

Why work with us?

We take pride in what we do – it’s our craft. Our approach is centred on years of experience helping large investment managers with a broad spectrum of strategic, operational, technical, and data-related challenges. We’ve partnered with large investment managers, and our work spans across APAC, North America, Europe, and Middle East.

Identifying financial materiality requires significant knowledge of industry-relevant ESG issues, as well as deep investment management experience. Our team combines the best in investment management talent who have a passion for ESG. Bringing together strong academic backgrounds with extensive business experience, Invartis is well positioned to collaborate with your team to create an ESG strategy which delivers optimum value for stakeholders.

ESG Integration Approaches

The ESG integration journey is different for every asset manager. Our experience tells us that there’s no one size fits all approach as nuances arise depending on factors such as size, asset class, geography, investment philosophy, operating models, and others. We outline the pros and cons of common approaches in a blog post here.

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