Working with Sustainable Screening gives you access to a wealth of expertise combining finance and ESG. The successful implementation of a Sustainability/ESG policy requires a good understanding of the culture and dynamics of an investment firm. At the same time, regarding ESG, you need a deep understanding of the different investment strategies, regulation, standards, and market developments. Sustainable Screening is also unique in capturing the relevant ESG issues and trends per sector and across different regions.
Responsible Investment strategies
Investors apply different responsible investment approaches. However, in general, the strategies can be grouped as follows:
- Negative screening: exclude specific investments/sectors from a fund or investment universe;
- Best-in-class: invest in the best-performing companies on selected ESG factors;
- Impact investing: invest with the purpose to create a positive impact on selected ESG topics (e.g. Education, healthcare, renewable energy);
- ESG integration: systemic integration of ESG risks and opportunities in an investment process;
- Engagement: interaction between investors and (potential) investees on ESG issues with the purpose to influence ESG practices and/or disclosure.
Regulations and standards
With the growth of ESG, the number of regulations and standards is continuously increasing. It is an ongoing challenge for investors to keep up with new compliance requirements, develop monitoring tools, and adapt their reporting frameworks accordingly. Regulations and standards tend to differ per region, sectors and ESG topic.Sustainable Screening can help you navigate through the labyrinth of regulations and target your limited resources to the essentials. For example, in the current setting, only a statement on Sustainable Finance Disclosure Regulation (SFDR) might be required and not a comprehensive policy. On the other hand, in several countries, you need to ensure that your investments are compliant with regulations on the financing of cluster weapons.
ESG topics across sectors and regions
Not all ESG issues are equally important across different industries. For example, water usage and waste management are more material to a company in the heavy industry. At the same time, labor relations and supply chain risks pose a higher risk to companies in the retail sector. In addition, geography and ESG investments intersect in different ways. For example, the ESG risks can be higher in certain locations, while ESG related national and regional regulations directly impact your investment business.Sustainable Screening connects sustainability themes with sector-specific challenges and opportunities. We also advise on the latest trends in the ESG landscape, such as biodiversity, the energy transition, marine conservation, and social equality.
Contact us to discuss further how we can help.