Solving investment stewardship challenges

The investment landscape is transforming. With the rising importance of ESG considerations in capital allocation decisions, investment stewardship is becoming increasingly paramount. As asset managers, it is essential to use our influence responsibly to ensure that portfolio companies adhere to ESG norms. To achieve this, understanding the true performance and strategy behind ESG disclosures and ratings becomes essential.

The challenge of coordination

A recent survey by Schroders revealed a concerning trend: a staggering 27% of respondents identified a lack of coordination within investor organisations as the most significant barrier to optimising engagement processes. The report noted that good coordination is rare and, included a case study quote that corroborated our findings; it is “unclear whether portfolio managers and ESG teams even speak with each other”. Communication gaps hinder the effective integration of ESG considerations.

Materiality matters

Another key finding from the survey was concern regarding lacking materiality, chosen by 20% of the respondents. To bridge this gap, it is essential to foster a collaborative environment where investors and ESG teams unite. By doing so, we can holistically understand international standards, best practices, regulations, and ascertain the short to long-term capital allocation that aligns with strategic goals.

The reality of ESG commitments in the UK

Data consultancy Profusion’s recent report sheds light on a worrying trend among UK-based businesses. Alarmingly, half of the UK business leaders admitted to not making significant efforts to gather data on their ESG commitments. Furthermore, only 36% of the 200 C-suite leaders surveyed across different UK-based businesses stated that their organisations support ESG commitments with a completely actionable plan, inclusive of clear KPIs. This highlights a substantial gap between ESG rhetoric and real, actionable commitment.

SI Engage: Your solution to ESG engagement challenges

Given the challenges highlighted above, there’s a growing need for a comprehensive solution that not only bridges the communication gap within investor organisations but also ensures actionable plans towards ESG commitments. This is where SI Engage comes in.

SI Engage offers a dynamic system designed to help investors improve investment stewardship, ensuring an in-depth understanding of ESG performances, and promoting seamless coordination between teams. Whether you’re a portfolio manager trying to understand ESG implications or an ESG team striving for materiality in your reports, SI Engage offers functionalities tailored to meet your needs.

The future of investment lies in responsible stewardship and effective ESG engagement. By addressing the prevailing challenges in the industry, asset managers can play a pivotal role in fostering sustainable growth. Let’s start the journey together. Get in touch with us today for a free trial of SI Engage and witness the transformation firsthand.

 

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