Seeking value, building confidence
Understanding risks and the search for value are often ‘top of the list’ of ESG concerns for institutional asset managers. But engagement to protect value, respond to clients and preserve confidence in markets is growing too.
Many asset managers begin their ESG journey by looking for unmanaged risks or new ways to assess management quality and asset values. This attempt to ‘integrate’ ESG issues benefits all clients, whether those clients are concerned about ESG issues or not.
The EIRIS role
EIRIS works with institutional managers to help them identify and mitigate risk, integrate ESG issues and engage effectively with companies. We offer invaluable expertise on what constitutes good ESG practice, identify the pertinent issues and the leaders and laggards in any given sector. We see our Climate Change and UN PRI Toolkits and our Convention Watch service as addressing that broader need amongst institutional managers to tackle these topics strategically. We know each institution will have its own approach. That is why our flexible tools can be easily tailored to meet different needs.
Growing customer relevance
Growing numbers of clients, including major asset owners signing the PRI principles, are now looking to institutional asset managers to use their influence as well as picking winners. Engaging with companies for positive ESG changes that enhance or protect value builds confidence with those clients. It can also help rebuild market confidence more generally.
The way ahead
Institutional asset managers may work with EIRIS for a variety of other reasons:
- Many institutional investors now see Climate Change as a threat to long term shareholder value, and are well placed to tackle the issue.
- Those who already see value in engagement on corporate governance issues are beginning to see environmental and social factors in the same light. They may focus on ‘bridging’ issues like bribery and corruption. Or they may start with how environmental or social impacts are ‘governed’ at Board level.
- Insurance related asset managers may want to link their health and environmental protection interests with their investment strategies.
To discuss how our research can help your institution, please contact our client team.
