Institutional investors are increasingly recognizing the potential for ESG (environmental, social and governance) factors - such as climate risk and poor human rights performance - to affect the valuation and financial performance of the companies they invest in.

At the same time, consumer demand for responsible investments is surging, especially from the Millennial generation1. Regulation is emerging, for example in the EU, and the influence of initiatives including the UN Principles for Responsible Investment (PRI) and the Task Force on Climate-related Financial Disclosures (TCFD) continues to escalate.

As a result, capital flows into ESG funds are accelerating and asset managers are under mounting pressure to integrate ESG considerations into their investment approaches.

Yet, as the pressure grows, asset managers face multiple challenges such as:

  • a complex landscape of ESG focus areas
  • differing expectations from institutional investors
  • the likelihood of new regulation and uncertainty over its form
  • a confusing array of inconsistent ESG data
  • an absence of standard ESG terms, metrics and reporting frameworks
  • a lack of consensus on the effects of ESG strategies on financial returns

KPMG member firms have a network of ESG, asset management and IT professionals who can help your organization enhance its approach to ESG, whatever your current level of maturity.

How we can help

KPMG member firms provide bespoke ESG services to match the differing needs of asset managers at various levels of ESG maturity. Our support typically covers the following areas:

  1. Develop ESG strategy
  2. Implement ESG strategy
  3. Monitor and report on performance
  4. Review processes and assure disclosures

Find out more information by downloading the brochure below.

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