Many public market investors have started to integrate environmental, social and governance (ESG) factors into their investment processes and product offering. Alternatives investors have started to follow suit. With this positive trend progressing, so do the diversity in ESG investment approaches investors can select from and the need to understand the growing wealth of ESG data available to integrate into those approaches.
Blue Phoenix helps investment managers make sense of it all. Asset managers, family business, and private equity investors.
Market overview
Institutional and private investor preferences have been rapidly changing towards sustainable investment solutions in the last decade. At the same time, regulators such as the European Union are formatting legislature related to sustainable finance to fund national commitments to climate change and sustainable development. As an investment manager, where should you start? Are you already on the right track?
Blue Phoenix can assess the current status quo of your sustainable investment practices. The output will include an update on the current sustainable finance landscape, a mix of quick and strategic wins and suggestions for messaging to clients.
ESG strategy definition
The Global Sustainable Investment Alliance (GSIA) reported that in 2018, global sustainable investing assets added up to $30.7 trillion (34% increase since 2016). It also concluded that the market share of sustainable investing assets increased in nearly every market. In its study, GSIA included negative/exclusionary screening, positive/best-in-class screening, norms-based screening, ESG integration, sustainability-themed investing, impact/community investing, and corporate engagement and shareholder action. As this trend persists and competition among sustainable investment solutions intensifies, it might be the right moment to review your unique strategy.
Blue Phoenix guides investment managers through the ESG strategy development process. The alignment between the sustainable and traditional investment philosophy will be reviewed, the strategies and messaging of your main competitors are analyzed, and a proposal for unique selling propositions is delivered.
Selecting the right ESG data provider
Today, ESG data availability is not so much the problem. Understanding what the data means, why it is collected, and how it should be interpreted for investments, often is. Is one data provider better than the other? What are the factors you should use in your selection procedure? Which provider’s methodology best suits your overall investment philosophy? These are all important questions as you embark on your sustainable finance journey or as you are looking back on the first few years of your journey.
Blue Phoenix supports investment managers in shortlisting and selecting the ESG data provider that best fits the manager’s overall investment approach.
Fund board services
Depending on the fund type and jurisdiction of the registration, an investment manager might need independent board members. Blue Phoenix is able to offer a credible expert through Amara Goeree.