CapstoneLaws’s ESG advisory offering supports investment managers to execute the fundamental cultural and organizational changes required to adapt to a more sustainable asset management environment. Our assets include an ESG health check as starting point as well as various project execution templates to follow-up.
Sustainable investment management is more than a buzz-word. It is a revolution. Investments into businesses that respect high sustainability standards offer distinct advantages for asset managers and their clients alike:
- Scientific studies prove that the inclusion of sustainable investment criteria comes at no performance cost
- A sustainable investment approach helps to hedge the portfolio against knowable large risks
- Sustainable investment management offers positive alpha if the societal change towards a higher degree of sustainability continues
Building a more sustainable economy will require fundamental changes in today’s asset allocation and approach. Leading asset management companies will need to adapt their culture, processes, and technology.
Through our experience CapstoneLaw enables its clients to transform their asset management business and turn the sustainability challenge into an opportunity.
Our services include:
- Identification of gaps to best practices in sustainable investing frameworks
- Definition of an ESG investment policy as core part of a sustainable investment framework
- Assessments of sustainability levels in an investment portfolio or individual investments
- Implementation support for transparent sustainability reporting
- Procurement support to optimize the handling of ESG providers
Our ESG Health Check is designed as a starting point for implementing a sustainable asset management approach. It assesses and compares critical dimensions of an industry-typical investment framework.
Benchmark questions in our ESG Health Check help us to determine the sustainability readiness and derive actionable recommendations to kickstart the journey towards becoming a sustainable asset manager.
Our assessment includes the following topics:
- Do the organizational statutes build a solid basis for ESG integration?
- Does the ESG policy provide a clear definition of ‘sustainability’?
- Is your ESG investment approach specific to all relevant asset classes?
- Is a specific idea of sustainability measurement criteria present?
- Do you regularly prepare a detailed ESG/sustainability report?
Based on the results of the ESG Health Check we specify a tailored implementation and training roadmap together with our clients.
Goal of the ESG offering as well as the ESG Health Check is to actively support the sustainability transformation at our clients.
Exemplary deliverables of our work for clients include the following:
- Inputs and updates regarding the latest regulatory developments on Swiss, European, or global level (e.g., management briefings)
- Clarification of ESG/sustainability objectives and corresponding KPIs in the specific context of a client (e.g., KPI setting and dashboard)
- Ideation and documentation of specific ideas on how to engage clients with sustainability topics (e.g., client marketing materials)
- ESG integration alternatives along the asset management value chain (e.g., engagement or exclusion approach)
- Review of existing ESG data provider setup and identification of improvements (e.g., make or buy decisions regarding ESG data)