The EU taxonomy* for defining sustainable economic activities matters to asset managers because the taxonomy’s thresholds for CO2-emissions will be used for classifying and disclosing the extent to which investments are environmentally sustainable. Asset owners are expected to favor asset manager products with a high proportion of taxonomy aligned securities, as this supports their ESG and climate commitments.
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1. Analyze ESG commitments and focus areas of the asset manager’s clients.
The first step is to help asset managers understand their clients’ approach on ESG and climate-related risks and opportunities. KPMG professionals can help asset managers conduct analyses on their current and target clients (e.g. pension funds, foundations, cities, universities, unions, churches, etc.)
2. Assess the extent to which the asset manager’s investments are within the taxonomy thresholds.
Some asset managers may consider themselves as pioneers in sustainability and ESG, but the taxonomy climate criteria is a new classifcation. KPMG professionals can support asset managers in applying the taxonomy to their investments and to best position themselves for their clients.
3. Communicate to investors the asset manager’s approach and commitment in meeting their expectations.
Asset managers need to communicate to their current and potential clients that they can support their sustainability and climate commitments — also from the taxonomy perspective. KPMG professionals can assist asset managers in communicating their climate proposition to their clients by supporting them with the tools they need such as, client presentations, web pages, investor query response, etc.