ESG Controversies : A Detailed Identification is Must-Have!
Feb 26, 2024
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by
ResearchPool
in
Insights
With growing investors’ expectations and new labelling requirements, asset managers can not afford a delayed ESG controversies identification nor rely on an identification process that is not detailed enough based only on absolute controversies numbers.
As an example, the French “ISR” Label requires detailed identification, analysis, and follow-up actions as part of a comprehensive asset manager policy for the prevention and verification of controversies that include:
- process for identifying controversies (sources and monitoring process)
- methodology for analyzing and classifying controversies
- escalation process, in particular: initiation of dialogue, strengthening of dialogue
- monitoring, management act, type of actions, etc
- internal governance put in place to deal with ESG controversies, as well as the tools for monitoring follow-up actions
- formalization of decisions relating to past controversies, etc
ResearchPool powered solution enables also entices robust and automated controversies process that delivers against investor expectations and labeling requirements. This will also entices collaboration, and foster productivity amongst firms.
Amongst other features, your users will easily be able to create a controversy case, and log any evidence (content, data, or activities), plan action, track progress and document decisions from their usual interfaces.
You can also read Making ESG Engagement Reporting at Fund Level Easy! & Is ESG Stewardship Under-Resourced? An alternative view…
Anticipating Widespread of ESG Controversies
More than ever, controversies have a significant impact on stock prices. We probably all remember of recent events where stock prices plunged following breaking news on accounting fraud, inadequate social behavior, environmental damage, etc.…
The problem that many would like to resolve is how to build a robust process to anticipate controversies before they become widespread and then often followed by a stock plunge. Relying on external data providers is often only a partial answer because the identification of a controversy and its level of severity needs to be a multistage and market-proof process that requires time.
Given their ongoing engagement with issuers and local market presence (for many), analysts and portfolio managers are in good position to capture early evidence, and therefore anticipate upcoming controversies. However, this requires asset managers to put in a place a robust process from information capturing through case build, until there is enough evidence to validate the controversy
ESG Controversies Solution Features
Case Creation
Users will be able to create controversies cases with customised tags directly from Microsoft Office products (Outlook, Word, PowerPoint, etc…)
Evidence Log
Users can log evidence (content, data and/or events) with customised tags directy Microsoft Office products (Outlook, Word, PowerPoint, etc…)
Discovery and Sharing
Customizable, intra-day updated, and ready-to-be-used reporting to track ESG Engagement across the organization.
ESG Reporting
Admins can access intra day reporting on cases and related evidence in a few clicks. Data reporting visuals fully customizable to your organisation needs.
