Financial Services Ireland

Case study: Making the case for responsible investing

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Case study: Making the case for responsible investing

With new regional regulations on the horizon and customer expectations changing, asset owners must take a proactive stance on responsible investing.

A leading UK asset owner chose EY to provide an objective analysis of the likely effects of developing a responsible investment strategy; to benchmark its performance against peers and identify gaps; and to recommend a route to becoming a leader in the field.

Read the full case study to learn how we helped the client integrate ESG into its processes, positioning it to take advantage of market opportunities and create sustainable value for its customers.

Our view: Using Environmental, Social & Governance lenses as part of the investment process at the very least protects on the downside and when fully embraced can be a source of alpha. Think of dieselgate, corruption scandals and geopolitical security concerns…

It is also becoming a key plank in the marketer’s asset gathering strategy. Sovereign wealth funds, large institutional investors and the millennial generation all are asking their asset managers for their ESG credentials.

The European Securities and Markets Authority (ESMA) has been mandated to prepare technical advice on the integration of sustainability risks and factors in the UCITS Directive and AIFMD Directive. It aims to do this by 30 April 2019.

Managers who wait until they are compelled to make ESG disclosures may find they are losing market share to those who are voluntarily disclosing methodologies and other material.

ESG is at a tipping point, not a ‘nice to have’, but rather an essential ‘hygiene point’ just to stay in the game.

Paul Traynor

Partner and Advisory Lead, Wealth & Asset Management
Paul's Full Profile