from regulatory agenda to product integration
2021 and 2022 are years rich in ESG regulations.
Many European regulations come into force:
In addition, there are national & sectoral regulations:
IORP II | UCITS | AIFMs | MIFID II | IBIPs
In the field, Forethix identifies 4 types of possible approaches for ESG integration in companies' strategies:
a "regulatory" approach where the objective is compliance;
a "normative" approach where the objective is to align with norms and standards (such as UNPRI);
a "differentiating" approach where the objective is to turn ESG into a market opportunity;
a "Best-in-Class" approach where the objective is to create value through their ESG product and service offering.
Depending on the approach taken, the ESG commitment of organisations is more or less important. The integration of ESG factors in the management of financial products will therefore take place at different levels: