银行和金融服务机构可以通过更复杂的数据管理实践提供可持续的ESG投资政策

INTRODUCTION Banks and other financial institutionscan now deliver a sustainable andvisible ESG investment strategy withconfidence. By harnessing relevant datathrough a focused ESG Platform, FSIexecutives are able to make informeddecisions that will improve bottom linesand satisfy increasingly demandingquestions from investors and regulators. This paper examines the evolution of howESG policies and objectives have becomeembedded in the investment processand how deploying new technologysolutions can make them a success. An integrated ESG strategycan combine complex datasets from diverse sources andbalance competing prioritiesto deliver ESG goals that alsomaximise profitability. Environmental, social, and corporategovernance (ESG) is becoming embeddedin many businesses as the central approachto evaluate how a corporation includesthe achievement of social goals as wellas maximizing profits for shareholders. It means that financial performance isno longer the main component by whichan effective organization is measured.Instead, companies are increasinglybeing held accountable for the variousoutcomes they generate, or are indirectlyresponsible for, besides fiscal returns. Many criteria have been created to assess these outcomes, one of the most popular ofwhich is the quadruple bottom line. This embraces a wider spectrum of factors that mustbe taken into account and broadens the horizons for organizationalaccountability and responsibility. For example, it has led to activist shareholders, among the many other stakeholders,to advocate for net-zero policies and even closer alignment between ESG targets andexecutive compensation packages. The situation has become a potential minefield for executives as they try to balance theoften competing needs of these interested parties. But help is at hand to both navigatethis ESG ecosystem and ensure better-informed decisions are taken to satisfythose expectations. There are many potential upsides from the adoption of a well-resourced ESGpolicy. Various studies already demonstrate that businesses with strong ESGcommitments can outperform the competition. These are some reasons why: Cost reduction Risk exposuremitigation Talent retention Businesses that apply goodESG practices can generatelong-term efficiencies thatoffset rising operatingcosts. Management can alsobenefit from an ESG focusby lowering capital expensesand increasing the firm'svalue due to interest fromwider pools of capital. A proven ESG strategy canalso provide an organizationwith competitive advantages.According to a recent Mercersurvey, companies withrobust ESG frameworks notonly have high employeesatisfaction, but are moreattractive to new talent. Many major investmentfunds with ESG criteria nowregularly outperform thebroader market. Recentresearch also shows thatcompetitive ESG strategieshelp corporations lowertheir risk of negativegovernment intervention,allowing for greaterstrategic independence. Source:Conservice ESG Institutional investors — companies with asset management functions, together withinvestment banks, now realize the impact of ESG on the value of the businesses theyinvest in makes it more important to integrate these factors in their investment process. This trend will continue as ESG integration in the mainstream process provides a clearopportunity to optimize the risk-return characteristics of an investment portfolio. SUSTAINABLE STRATEGY IN INVESTMENT:A GLOBAL EMBRACE are under pressure to conform to thesedynamic changes in the regulatorylandscape. These increasinglymandate enterprises to be consciousof their impact on the environment,their relationship with employees,suppliers, clients, and communities;and set robust standards of corporategovernance. Apart from regulators,voluntary guidelines such as the UNPrinciples for Responsible Investment,together with risk mitigation and asurge in brand equity have drivenfirms` focus towards sustainability. ESGmoved into the investmentmainstream when the CEO ofBlackRock, one of the largest assetglobal management companies,challenged fellow CEOs in January2020 to make sustainability a keymeasure of corporate performance. Throughout 2021, the importanceof environmental, social, andgovernance matters proved to beeven greater than many had expected,with ESG becoming a key area offocus for a range of stakeholders,particularly in the boardroom. Banking and other financial servicesfirms are at an inflection point assustainability moves to the forefront ofstrategy making. Financial institutions MORE THAN 80% OF COMPANIESWORLDWIDE REPORT ONSUSTAINABILITY SINCE 2020 Source:KPMG Sustainability reporting Sustainable stock exchanges initiativemembers (number of exchanges) There continues to be a mixture of scepticism and weak enthusiasmabout a full commitment by many executives to environmental, social,and governance (ESG) issues. This is partly because of conflictingsystems, ratings, and guidance that discredited early outcomes. More