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18 November 2019       Albourne

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Albourne continues to see increased demand from investors for ESG integration in the investment process, however there are issues that both fund managers and investors face when integrating ESG in their processes.

Albourne has integrated a review of managers ESG capabilities in its Operational Due Diligence with the aim to provide an overview of their ESG capabilities, thus complimenting the investment, operational and quantitative due diligence that Albourne already completes on funds. The significant issue for fund managers continues to be accessibility to objective standard material ESG information on the investment universe.

Please watch the below Albourne film on the aspirations and challenges of ESG reporting, covering the following key areas:

  • Why Albourne views that the integration of ESG data into investment decisions is key.
  • What can be done to make it easier for managers to integrate ESG data into their investment processes.
  • The need for a standardized reporting framework for ESG data from corporates.

Albourne believes that the future of ESG data provision requires a standardized framework, allowing for simple collection collation and comparison, similar to the creation of the Open Protocol reporting of a fund’s risk exposures. The ability for fund managers to factor in all information that is relevant and material to an investment, is the key to any investment strategy. Albourne is looking to work with others in the investment industry that are focused on providing a solution to this problem.