Lost with ESG? We've been there.
Let us show you the way.
Our experience taught us one or two things on how to tackle ESG strategies in a cost-efficient way. But to be able to take measured decisions, we first need to figure out what is at stake.
␥ Market context
Why is it so complex?
Key factor #1
Your data is managed on inadequate low-tech systems
Key factor #2
The countless parameters to consider when defining an ESG strategy make it hard to take decisions
␥ Any best-in-class approaches?
The 3 most common approaches to ESG
What makes this change all the more challenging is that all players in the field (including regulators) have a very short-term vision on the potential outcomes, and don't always know which approach to adopt.
Whether you're Chief Investment Director at a major insurance company or Head of an asset management boutique, chances are you have been thinking about the best ways to approach ESG.
Out of all of these choices, we'll cover the 3 most common approaches currently adopted on the market and look into why all 3 miss the mark.
#1 The DIY Approach
"I’ll go green on my own"
Settle down there, Hulk!
Unless you're managing a highly skilled team of developers and you have several millions to allocate to your ESG compliance, you might not want to go this way. It is likely to be the most costly of all approaches and to harshly affect your ROI.
#2 The Five-Star Approach
"I’ll outsource it all."
Only if profits can wait.
Choose this approach if you are opting for a premium service. This option will save you time and hassle but will not protect your margins.
#3 The One-by-One Approach
"I’ll choose the ESG providers that fit my current needs, and no more."
The urge to start somewhere with ESG doesn't mean you should start just anywhere. Players who factor out the instability of the ESG investing market could fall short of ideas when their investment turns out to be irrelevant 12 months from now. We strongly believe that a lack of visibility should come with a need for flexibility, and searching for and contracting with ESG investors one-by-one sounds like a choice you might regret.
␥ What are these approaches missing? Why can’t they work?
3 takeaways for your ESG strategy
Don’t patchwork, add-on & plug-in.
Integrate a robust data management system, right from the start.
In this pressing and unpredictable context, opting for an evolutionary IT system built to adapt to your business journey will save you time and money. On the contrary, adding blocks of code on top of your data management system is likely to deteriorate your system’s usability and cost-efficiency in the long run, making it all the more difficult and expensive to upgrade. You are better off with an ecosystem approach.
Test your strategies on real investment data, and let data lead the way.
Because of the overwhelming complexity of the ESG landscape and an utter lack of tools to tackle the subject, priorities are hard to set and arguable assumptions, easy to make. Finding out the best ESG approach is more a question of testing out ESG providers that suit your needs, rather than rushing in to a solution that might not be right for you.
Don’t grow at your own expense.
Develop while keeping risks and costs under control.
In the urge for adapted short-term ESG solutions, long-term operational risks could be overlooked. Because these transformational projects will often be intricate and costly, it is most important that institutionnals factor in scalability when choosing their ESG ecosystem, to ensure their growth doesn’t get in the way of profits.
␥ How can we help?
Enabling investors to operate effectively by those principles is exactly where our value stands.
Portfolio Look-Through App
Look through your investment data in just a few clicks.
Open ESG marketplace
Turn your investment data into a goldmine in seconds.
① Connect your data to the ecosystem simply
Get a full look-through of your portfolio at asset-level in seconds
Access the best of ESG fintechs and regtechs on a single marketplace
Profit from integrations with key asset servicers such as BNP Paribas Securities Services
② Proof-test curated ESG providers in seconds
Inject your funds’ data in our ESG marketplace seamlessly and start experimenting in minutes
Get automated quotes based on your portfolio data and get free trials from our providers
Compare tools and methodologies directly from an aggregated real-time dashboard
③ Roll out your ESG strategy smoothly
Deploy your ESG strategy while keeping costs and security under control
Manage ESG marketing and reporting and get set for SFDR, EU Taxonomy and TCFD
Revert to field-test mode cost-efficiently if your strategy requires adjusting