One of the world's largest asset managers, with assets under management of over US$2 trillion, is convinced that sustainable investing will become the new norm. To support its ambitions to become a market leader in sustainable investment, the company sought to develop a robust strategy that integrated ESG (environmental, social and governance) considerations into its investment and management practices.
A team of ESG asset management specialists from KPMG member firms in the Netherlands and Germany worked with the client to conduct a materiality assessment to help the company understand its most significant ESG issues and shape and inform its strategy. This involved a broad-ranging review of the client's investment processes and portfolios, as well as interviews with senior management. The research identified a number of challenges including gaps in the company's ESG governance structures and sub-optimal controls.
KPMG professionals provided recommendations to help the client shape its sustainability and ESG investment strategies, such as changes to organizational structure, the introduction of new ESG policies, and improvements in accountability and traceability of assets. KPMG specialists also helped deliver ESG training for the client's senior staff members. With the support of KPMG, the client improved its approach to sustainability and ESG investment. Today the company is ranked as one of the top asset managers by leading sustainability indexes.
Tomas Otterström, KPMG in Finland and KPMG in Sweden.