ESG Integration

ESG Integration is becoming the new norm as investors look to improve returns, lower investment risk, while meeting evolving client demands, and regulatory requirements.

What We Offer

ESG factors are key risks and opportunities that drive the long-term performance and competitiveness of corporations. Research is continuously showing that corporations that actively manage their ESG factors are positioned to enhance their operational performance while simultaneously lowering their risk parameters as well as cost of capital, and as a result generating sustainable long-term value.

It is therefore crucial for investors to analyse material ESG factors related to their investments to mitigate against emerging risks and also to identify potential opportunities. In addition, it allows for efficient capital allocation, which takes into account external costs (e.g. polluting or labour violation activities) that negatively impact asset values over time, (such externalities will in due course be internalized).

Through our deep understanding of the corporate & investment world, as well as specifically the ESG integration space, we are uniquely positioned to offer expert advice on ESG integration with the aim of promoting ESG awareness, improving investment decisions, and therefore driving sustainable long-term value.

ESG integration is a holistic approach to investment analysis, it improves investment decision making, and helps highlight and analyse many of the intangibles that will be important contributors to long-term value creation. Moreover, integrating long-term strategic thinking into a corporation’s operation creates resilience and brand protection that core investors seek.

ESG investing is becoming the norm and capital flows into ESG funds is accelerating, causing many investors to seek guidance on how to integrate ESG into their investment analysis and decision making process.

Reasons why institutional investors would integrate ESG into their investment analysis and decision-making process, would include:

Improving their research and analysis capabilities

Meeting requirements under fiduciary duty or regulations

Enhancing the risk-return profile of their investments

Being a responsible investor and contributing to sustainable development

Providing ESG investing services to meet evolving client demand

Launching or enhancing their stewardship activities

The method used for ESG integration will fundamentally differ from one investor to another; and this is because their holistic and/or responsible investment philosophy is different. That being said, the motives behind ESG integration usually falls in one or a combination of the following categories:‍

Risk mitigation purposes

Enhanced risk/return profiles

Non-financial motives

Our team believes in customizing our services to suit each client’s unique needs and motives. We will tackle with thoroughness the below three components of ESG integration strategy that will naturally fit within the client’s investment philosophy:
Our deliverables would include the following:
  • Develop an ESG integration strategy & framework
  • Implement & integrate ESG metrics into the analysis and decision-making process (the operational process)
  • Integrate ESG into due diligence process
  • Establish or enhance stewardship/engagement strategies (engaging in investee companies is an integral part of ESG integration. Such positive dialogues must be specific and aim to preserve and enhance value). This falls within the fiduciary duty of institutional investors

Education/Awareness support:
The ESG space is evolving and naturally producing challenges and opportunities to which investors are having to react. As part of our ESG Integration services we offer education/awareness sessions tailored to our clients’ needs to help them build a thorough understanding about the concept of ESG, the nature of the ESG market and more.

What our clients say

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Dominik Stec

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Dominik Stec