Our understanding of sustainability and finance, and the plethora of frameworks available in the sector, help us to support our clients in meeting their sustainable (climate, green and social) finance and investment objectives.
For corporates, understanding how sustainability factors are being used by existing and potential debt funders and equity investors is critical to long-term financing strategies and the cost of capital. Our team works with companies to develop an approach to sustainable finance that aligns to sustainability and corporate strategies and meets the expectations and needs of financiers and investors.
Banks and other financiers need to be clear on their strategic approach to Sustainable Finance. We help to create Sustainable Finance strategies that consider how it aligns and supports their broader Responsible Banking and Sustainability objectives and commitments; how it fits with their investment and risk appetites; portfolio and industry lending and investment targets; how it informs and guides their product selection; how it influences pricing; and what reporting and verification regimes to apply.
There are many ways which an insurer, bank, investment/fund/asset manager can implement their responsible investment policy commitments and incorporate environmental, social and governance (ESG) factors in financial decisions.
We help our clients to develop and implement changes across their existing financing and investment processes in a way that reflects their chosen approach to responsible and sustainable investing. This can involve screening processes (either negative/exclusionary, positive/inclusionary or norms/standards-based screening), integration of ESG factors in financial/valuation analysis, sustainability-topic and impact-themed investing criteria, and corporate/shareholder engagement approaches.
Through our practical experience working with the world’s most credible and recognised sustainability-focused investor surveys and benchmarks, we help our clients best respond and meet expectations. We work with clients to improve the quality of their sustainability performance measures and processes in a way that responds to investor-led surveys and meets evolving mandatory and voluntary public disclosure requirements in corporate governance and financial reporting.
“What does ‘net zero by 2050’ mean for our investment portfolio?”
“How do we consider and report on ‘modern slavery practices’ in our investments?”
“How do we educate our investment managers on ESG matters?”
We design and deliver bespoke training sessions for investors who are looking to increase their understanding and awareness of how ESG relates to their products and services and their investors’ expectations. Sessions can be tailored to focus on specific factors, from general knowledge on ESG and Sustainability through to topic specific knowledge such as human rights and modern slavery to climate change risk and opportunity.
Responsible investing, also known as ethical investing or sustainable investing, is a holistic approach to investing, where social, environmental, corporate governance and ethical factors are considered alongside financial performance when making an investment.
We help investors across all asset classes in developing their responsible investment policy or position statement. This can be informed by principles-based frameworks such as the ICGN Global Stewardship Principles and the Principles for Responsible Investment, or more specific/thematic frameworks such as Sustainable Finance Roadmaps and Taxonomies and the Taskforce for Climate Related Financial Disclosures.
With the estimated that $5 to $7 trillion financing and investment is needed every year to support the implementation of the Sustainable Development Goals (SDGs) asset managers and fund management investors are increasingly creating impact-based investment products. The industry is continually growing with the support of organisations such as the UN Environment Programme Finance Initiative (UNEP FI) and the Global Impact Investing Network (GIIN) who have developed a range of resources and guidance for the finance sector.
Our team have worked with a range of investors and financiers to help develop their impact-based approaches, from product development (such as SDG aligned investment products) and developing impact/outcomes measures to inform investment decisions and assess/report on portfolio performance.
Investors and financiers need to understand and consider a range of ESG factors in their valuations and decisions, whether its during asset ownership and management or during acquisition or refinancing stages. We provide specialised and bespoke ESG due diligence support to provide clients with the information they need to make their financial decisions. We understand the breadth of relevant ESG frameworks (including the IFC Performance Standards, Equator Principles, OECD Multinational Guidelines) and at asset level ratings (including NABERS, GreenStar, ISCA) and how they translate to financial deals and exposures.
We also assist clients to establish, formalise or strengthen their ESG due diligence processes and systems to help ensure consistent and robust processes are applied through their lending and investment cycles.
Frameworks and initiatives such as the Principles for Responsible Investment, Equator Principles for Project Finance, UN Sustainable Development Goals (SDGs), Taskforce for Climate Related Financial Disclosures, Sustainable Finance Roadmaps and Taxonomies, UN Sustainable Stock Exchanges initiative, Principles for Responsible Banking plus many others continue to support the finance sector to make and accelerate greater contributions to sustainable development.
However, many of them come with disclosure expectations and commitments that need to be met on a regular basis. Our team include practitioners who have worked with these frameworks and are able to provide support towards meeting the mandatory and voluntary reporting requirements.
Discuss your Sustainable Finance requirements
Contact us today and one of our experienced team members will get back to you to discuss your requirements. Our approach combines technical, commercial and financial expertise to provide outcomes that deliver tangible benefits to our clients.