Sustainable finance:
from regulatory agenda to product integration
The agenda
2021 and 2022 are years rich in ESG regulations.
Many European regulations come into force:
In addition, there are national & sectoral regulations:
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IORP II | UCITS | AIFMs | MIFID II | IBIPs
In the field, Forethix identifies 4 types of possible approaches for ESG integration in companies' strategies:
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a "regulatory" approach where the objective is compliance;
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a "normative" approach where the objective is to align with norms and standards (such as UNPRI);
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a "differentiating" approach where the objective is to turn ESG into a market opportunity;
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a "Best-in-Class" approach where the objective is to create value through their ESG product and service offering.
The strategy
The integration
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:
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optimisation of the ESG investment strategy under financial constraints or objectives;
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impact analysis of ESG investment strategies;
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evaluation of the contribution to performance of mixed ESG strategies.
Recorded webinar on March 18th, 2021 in European Finance Summit
