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Responsible investment and ESG for asset managers

Responsible investment and ESG for asset managers

With the rising prominence of responsible investing, and the impact of Environmental, Social and Governance (ESG) factors, KPMG's Asset Management practice is committed to raising understanding of these important investment considerations and supporting member firm clients in incorporating ESG into their activities.

Integrating ESG into asset management

Responsible investing has increasingly become a top industry priority. In their 2018 Global Risks Report, the World Economic Forum demonstrates a strong shift from economic to environmental, social, and geopolitical risks, requiring new techniques for mitigating these risks.

Responsible investing is an approach to investment that explicitly acknowledges the relevance to the investor of ESG factors, and of the long-term health and stability of the market as a whole.

The focus on ESG brings opportunities and challenges for asset managers. For example, institutional investors are recognizing the potential for ESG factors - such as climate risk and poor human rights performance - to affect the valuation and financial performance of the companies they invest in.

KPMG's ESG services

KPMG member firms offer bespoke ESG services designed to match the diverse needs of asset managers at various levels of ESG maturity. This support typically covers:

  • Developing an ESG strategy: KPMG professionals provide insights based on analysis and proprietary frameworks and tools to shape an ESG strategy suited to your organization and client base.
  • Implementation: KPMG member firms help implement an ESG strategy, from designing an ESG roadmap to preparing and training employees.
  • Monitoring and reporting: KPMG specialists help determine reporting needs and support the implementation of effective data collection and reporting systems.
  • Review process: KPMG professionals help review internal audit, governance and risk assessment processes as well as stress test investment portfolios, in the context of new regulation or climate change scenarios.

Watch the video capsules below for responsible investing and ESG insights from KPMG member firm partners at the FundForum ESG and Impact event in The Netherlands in November 2018, sponsored by KPMG.

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